WORLD TRADE  
ORGANIZATION  G/SG/N/10/IND/9 
G/SG/N/11/IND/4 3 July 2009 
 
(09-3238) 
Committee on Safeguards Original:   English 
  
 
NOTIFICATION PURSUANT TO ARTICLE 12.1(C) 
OF THE AGREEMENT ON SAFEGUARDS  
 
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2 
OF THE AGREEMENT ON SAFEGUARDS 
 
INDIA 
 
(Phthalic Anhydride)
 
 
 
 The following communication, dated 1 July 2009,  is being circulated at the request of the 
Delegation of India.    
_______________ 
  
1. Evidence of Serious injury or th reat thereof caused by increased import 
 
 The import of subject product has shown an increasing trend since 2007-08 in absolute terms 
as well as in relation to the domestic production.  The domestic production and capacity utilization 
has declined during year 2008-09.  The sale of the subject product has declined during 2008-09.  
Market share of domestic industry has shown signi ficant decline in 2008-09.  The domestic industry 
has suffered losses during 2008-09 as a result of the increased imports.    
2. Information on whether there is an absolute  increase in import or an increase in import 
relative to domestic production 
 
 There has been increasing trend in import in absolute terms as well as in relation to domestic 
production as in the table given below.    
Year Qty 
imported 
in MT Qty 
imported 
(index) Total 
Domestic 
production 
(MT) Total 
Domestic 
production 
(Index) Imports as 
a % of 
Total 
Domestic 
production 
2005-06 24,092 100 168,578 100 14% 
2006-07 14,133 59 201,108 119 7% 
2007-08 31,203 130 220,168 131 14% 
2008-09 (upto Dec 2008) 30,613 127 134,773 80 23% 
2008-09 Annualized 40,817 169 179,697 107 23% 
 G/SG/N/10/IND/9 
G/SG/N/11/IND/4 Page 2 
 
 
  3. Precise description of the product involved 
 
 Phthalic Anhydride classified under sub headi ng No.2917.35.00 of Schedule I of the Customs 
Tariff Act, 1975.   
 
4. Precise description of the proposed measure 
 
 DG, Safeguards, the competent authority, has recommended imposition of safeguard duty at the rates specified below:   
 
1
st Year 25% 
2nd Year 20% 
3rd Year 15% 
 
5. Expected duration of the measure 
 
 The  Central Government notification to impose definitive safeguard measures has not yet 
been issued.    6. Further information 
 
 The final findings were published in Gazette of India on 28 May 2009.    G/SG/N/10/IND/9 
 G/SG/N/11/IND/4 
 Page 3 
 
 
  NOTIFICATION TO THE COMMITTEE ON SAFE GUARDS OF NON-APPLICATION OF 
SAFEGUARD MEASURE TO DEVELOPING COUNTRIES UNDER ARTICLE 9.1 
(FOOTNOTE 2 OF THE AGREEMENT ON SAFEGUARDS) 
  
1. Specify the measure 
 
 DG, Safeguards, the competent authority, has recommended imposition of safeguard duty at the rates specified below:   
 
1
st Year 25% 
2nd Year 20% 
3rd Year 15% 
 
 The Standing Board on Safeguards has, however, approved  imposition of definitive 
safeguard  duty 25 per cent up to 30 June 2009 and 15 per cent for the six months from 1 July 2009 to 31 December 2009.    
2. Specify the product subject to measure 
 
 Phthalic Anhydride classified under sub headi ng No.2917.35.00 of Schedule I of the Customs 
Tariff Act, 1975.   
 
3. Specify the developing countries to which th e measure is not applie d  and import share 
of these countries individually and collectively 
 
The import of the product from developing nations other than Pakistan, Indonesia and 
Thailand is less than 3 per cent.  Import of Phtha lic Anhydride from all developing nations except 
Pakistan, Indonesia and Thailand may not attract Safeguard duty.   
   
__________