WORLD TRADE  
ORGANIZATION  G/SG/N/16/IND/4/Suppl.3 
8 July 2009 
 (09-3348) 
Committee on Safeguards Original:   English 
  
 
NOTIFICATION OF APPLICATION OF TRANSITIONAL PRODUCT-SPECIFIC 
SAFEGUARD MEASURE PURSUANT TO SECTION 16.7 OF PART I  
OF THE PROTOCOL ON THE ACCESSION OF  
THE PEOPLE'S REPUBLIC OF CHINA 
 
INDIA 
 
(Aluminium Flat Rolled Products and Aluminium Foil
) 
 
Supplement  
 
  The following communication, dated 7 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 
 
 There has been rapid, sharp, sudden and signifi cant increase in import of the subject products.  
The share of import from People’s Republic of Chin a has gone up compared to other countries.  There 
is an increase in imports of subject product from Pe ople’s Republic of China in absolute terms as well 
as in relation to total demand in India.  Capacity utilization of domestic industry has shown steep fall 
in 2008-09 (up to Dec) compared to previous years due to impact of increased import of the subject 
products from People’s Republic of China.  Mont hly sales volume of the domestic producers has 
declined significantly during April-Dec 2008 compared  to 2007-08.  The market size of Aluminium 
FRP has been down by 1 per cent against 17 per cent loss of sales on account of import from China 
against the back drop of falling import from other countries.  The market size of Aluminium Foil 
increased while domestic industry suffered a loss of sales on account of increased import from China.  
Employment levels with the domestic industry have  declined due to curtai lment of production by 
domestic industry.  Domestic selling prices of the subject products started declining significantly from Oct. 2008 on account of increased import at lower prices.  The profitability of the domestic industry 
has significantly gone down.   
 
2. Information on whether there is an absolute  increase in import or an increase in import 
relative to domestic production 
 
Absolute increase in import
 
FRP  
Imports(MT) 2005-06 2006-07 2007-08 April-08 to Dec-
08 
China 9,853 16,155 26,617 22,287 
Other Countries 16,193 20,814 21,657 11,639 
Total Imports 26,046 36,968 48,274 33,925 G/SG/N/16/IND/4/Suppl.3 
Page 2  
 
  FOIL 
 
Imports(MT) 2005-06 2006-07 2007-08 April-08 to 
Dec-08 
China 5,437 10,777 23,925 27,534 
Other Countries 14,826 13,304 15,465 6,889 
Total Imports 20,263 24,082 39,390 34,422 
 
Increase in share of Import  
 FRP  
Imports(MT) 2005-06 2006-07 2007-08 April-08 to 
Dec-08 
China 22.11 29.97 44.07 50.73 
Other Countries 77.89 70.03 55.93 49.27 
 Source:  DGCI&S.   
 
Increase in share of Import  
 
FOIL 
 
Imports(MT) 2005-06 2006-07 2007-08 April-08 to 
Dec-08 
China 23.84 40.07 55.21 69.75 
Other Countries 76.16 59.93 44.79 30.25 
 Source:  DGCI&S.   
 
Increase in share of Import in Domestic Market  
FRP  
 2005-06 2006-07 2007-08 April-08 to 
Dec-08 
Sales of Domestic industry  50.85 51.10 46.17 42.29 
Sales of Other 
Indian Industries 36.80 32.78 35.68 36.98 
Total of Indian 
Industry 87.65 83.88 81.84 79.27 
Imports from China 2.73 4.83 8.00 10.52 
Other Countries-
Imports 9.62 11.29 10.15 10.21 
 
FOIL  
 2005-06 2006-07 2007-08 April-08 to 
Dec-08 
Sales of Domestic 
industry  42.21 39.21 31.12 26.37  G/SG/N/16/IND/4/Suppl.3 
 Page 3 
 
 
   2005-06 2006-07 2007-08 April-08 to 
Dec-08 
Sales of Other Indian Industries 25.93 26.64 24.94 21.81 
Total of Indian 
Industry 68.14 65.85 56.06 48.18 
Imports from 
China 7.60 13.69 24.26 36.15 
Other 
Countries-Imports 24.27 20.47 19.68 15.68 
 
 It is seen that there has been an increase in import both in absolute terms and relative to 
domestic production/sales.   
 
3. Precise description of the product involved 
 
 Aluminium Flat Rolled Products & Aluminium Foil classified under 7606 & 7607 of HSN and different subheadings of 760 6 and 7607 of Schedule I of the Customs Tariff Act, 1975.   
 4. Precise description of the proposed measure 
 
 The DG, Safeguards has recommended for im position of safeguard measures on following 
products:    
All products falling under Chapter headin g 7606 (Aluminium Flat Rolled Products) 
excluding
:   
a. Colour Coated Aluminium Coil with either PE (Polyester) Coating or PVDF (fluorine-carbon) Coating falling under CTH 7606.   b. Aluminium Composite panels.   
c. Aluminium-Manganese-Silicon based and/or  Aluminium-Magnesium-Silicon based alloys, 
whether clad or unclad;  with thickness between 0.05 mm to 3.00 mm;  with post brazing yield strength greater than 45 MPA, falling under tariff heading 7606 for use in heat exchangers including radiators, charge air coolers, condensers,  oil coolers, heater cores, evaporators, heat 
ventilation and air conditioning (HVAC) systems and parts thereof. 
Year Rate of duty 
1st Year 14% ad-valorem 
2nd Year 12% ad-valorem 
3rd Year 10% ad-valorem 
4th Year 8% ad-valorem 
 
All products falling under Chapter heading 7607 (Aluminium Foils) excluding :  
i. Aluminium Foil of thickness less th an 7 micron falling under CTH 7607.   
ii. Aluminium foil of 10.5 micron with rough surface and perforated whether printed or not; 
to be used by beer bottling unit.   iii. Colour Coated Aluminium Coil with either PE (Polyester) Coating or PVDF (fluorine-carbon) Coating falling under CTH 7607.   iv. Etched or formed Aluminium Foils falling under CTH 7607 meant to be used in the 
manufacture of Electrolytic capacitors.   
v. Poly Aluminium Foil Coated with Copolyme r falling under CTH 7607 to be used in the 
manufacture of PIJF Telecom Copper Cables or Optical Fiber Cables.   G/SG/N/16/IND/4/Suppl.3 
Page 4  
 
  vi. Aluminium-Manganese-Silicon based and/or  Aluminium-Magnesium-Silicon based alloys, 
whether clad or unclad; with thickness between 0.05 mm to 3.00 mm;  with post brazing yield strength greater than 45 MPA, falling under tariff heading 7607 for use in heat exchangers including radiators, charge air coolers, condensers,  oil coolers, heater cores, evaporators, heat 
ventilation and air conditioning (HVAC) systems and parts thereof.   
 
Year Rate of duty 
1st Year 30% ad-valorem 
2nd Year 25% ad-valorem 
3rd Year 20% ad-valorem 
4th Year 15% ad-valorem 
 
The Central Government has imposed definitive safeguard measures on the product description 
as above only for 2 years as under as per notification No. 71/2009 – Customs dated 19 June 2009 
issued by the Department of Revenue, Ministry of Finance:  
 
Aluminium Flat Rolled Products :  14 per cent ad-valorem for the goods imported from 
23 March 2009 to 22 March 2010 (both days inclusive)  for the first year and 12 per cent ad-valorem 
for the goods imported from 23 March 2010 to 22 March 2011 (both days inclusive) for the 
second year.   
 
Aluminium Foil :  30 per cent ad-valorem for the goods imported from 23 March 2009 to 
22 March 2010 (both days inclusive) for the first year and 25 per cent ad-valorem for the goods imported from 23 March 2010 to 22 March 2011 (bot h days inclusive) for the second year.   
 
5. Proposed date of introduction of measure 
 
 As specified in the notification 71/2009 - Customs dated 19 June 2009 issued by the Department of Revenue, Ministry of Finance, Govt. of India.    6. Expected duration of the measure  
 As per the above notification issued by the Department of Revenue, Ministry of Finance, 
Govt. of India, the definitive safeguard me asures have been imposed for two years.   
 7. Further information  
 
 The final findings were published in Gazette  of India on 29 May 2009.  The notification 
imposing definitive safeguard measures was issued on 19 June 2009.   
  
 
__________