WORLD TRADE  
ORGANIZATION  G/SG/N/6/IND/19 
6 February 2009 
 (09-0561) 
Committee on Safeguards Original:   English 
  
 
NOTIFICATION UNDER ARTICLE 12.1(A) OF THE 
AGREEMENT ON SAFEGUARDS ON INITIATION OF 
AN INVESTIGATION AND THE REASONS FOR IT 
 
INDIA 
 
(Dimethoate Technical
) 
   The following communication, dated 4 February 20 09, is being circulated at the request of the 
Delegation of India.   
 
_______________ 
 
  [
Under Rule 6 of the Customs Tariff  
 (Identification and Assessment of Safeguard Duty) Rules, 1997] 
  New Delhi, 21 January 2009  No. D-22011/ 07/2009  
 An application has been filed before me under Rule 5 of the Customs Tariff (Identification 
and Assessment of Safeguard Duty) Rules, 1997 by M/s. Shivalik Rasayan Limited, 1506, Chiranjiv 
Tower, 43, Nehru place, New Delhi 110019 for im position of Safeguard Duty on imports of 
Dimethoate Technical into India to protect the domestic producers of Dimethoate Technical against 
serious injury caused by the increased imports  of Dimethoate Technical into India.   
 1. Domestic Industry  
The application has been filed by M/s. Shiva lik Rasayan Limited, who is sole surviving 
manufacturer of Dimethoate Technical in Indi a and thus accounts for 100 per cent of the total 
production.    2. Product Involved  
The applicants have alleged serious injury cau sed to the domestic producer by the increased 
imports of Dimethoate Technical into India.  Di methoate Technical is classified under sub-heading 
No. 38089123 of Schedule I of the Customs Tariff Act 1975.  It is commonly known as Dimethoate in 
international literatures as per the guidelines of In ternational Organization for Standardization.  
Dimethoate is a widely used organophosphate insec ticide used to kill insects on contact.  It is an 
anticholinesterase which disables cho linesterase, an enzyme essential for central nervous system 
function.  Its primary use is as Insecticide after various degree of dilution by formulators.   G/SG/N/6/IND/19 
Page 2  
 
  3. Increased Imports 
 
 Dimethoate Technical  is imported into Indi a primarily from People's Republic of China and 
Hongkong.  The imports of Dimethoate Technical ha ve shown an increasing trend in absolute terms 
as well as compared to the domestic production.  Th e imports and domestic pr oduction of Dimethoate 
Technical during 2005-06 to 2008-09 (first six months) remained as under:   
    
 
    
 
  
4. Injury 
 
 The increased imports of Dimethoate Technical have caused and are threatening to cause 
serious injury to the domestic producers of Dime thoate Technical as indicated by the following 
factors:    
a) Production and sales:   The domestic production which increased from 829 MT in 2005-06 
to 906 MT in 2006-07 but fell down to 860 MT in 2007-2008 which has further fallen to 
367 MT in 2008-2009 (First six months).  The average monthly production in 2007-08 was 
71.67 MT which went down to 61.17 MT during first half of 2008-09.  The production 
facility of the domestic producer has been cl osed down on 23.9.2008 and thereafter it has run 
intermittently for mere 40 days.  The plant is co mpletely closed since 13.1.2009.  The average 
domestic sales per month has fallen down to 54.11MT during the period 2008-09 (April 2008-
December 2008) from 68.25MT in 2007-08 indicating 20.7 per cent of fall in sales.   
 
b) Capacity Utilization:   The capacity utilization of the applicant has gone down to Zero at 
present.  Further, the capacity utilization has b een on decline and significant decline has been 
noticed during the period 2008-09 (upto December , 2008) as apparent from the table below:   
 
  Figures in MT 
 2005-06 2006-07 2007-08 2008-09 
(Apr-
Dec) 2008-09 
(Oct-
Dec.) 
Installed capacity(MT) 1000 1000 1000 750 250 
Actual 
Production(MT) 829 906 860 442 45 
Capacity 
Utilization (%) 83 91 86 59 18 
 
c) Share of domestic producers in domestic consumption:   Market share of domestic 
producers has fallen significantly during 2008-09 to 51 per cent from 75 per cent in 2007-08 and 93 per cent in 2006-07, as apparent from the table below:   
  Quantity (MT) Share of 
Imports in Total 
domestic market 
2005-06 76 8% 
2006-07 68 7% 
2007-08 270 24% 
2008-09 (first Six months) 389 51%  G/SG/N/6/IND/19 
 Page 3 
 
 
   
    
 
  
d) Other parameters:  The data available with the Direct orate General indicates loss incurred 
by the applicant during the period April – December, 2008 as against the profit shown 
during 2007-08.  Further, all employees of the applicant have been rendered idle on account 
of closure of the production facility.   
 5. The domestic producers have requested for imposition of Safeguard Duty on imports of 
Dimethoate Technical for a period of three years.   They have also requested for an immediate 
imposition of provisional Safeguard Duty in light of  critical circumstances, leading to irreparable 
damage.    6. The application has been examined and it is  found that prima facie increased imports of 
Dimethoate Technical have caused and are threat ening to cause serious injury to the domestic 
producers of Dimethoate Technical and accordingly it has been decided to initiate an investigation 
through this notice.   
 
7. All interested parties may make their views known within a period of 30 days from the 
date of this notice to:   
   The Director General (Safeguards) 
  Bhai Vir Singh Marg,   Bhai Vir Singh Sahitya Sadan: 2
nd Floor, 
  Gole Market,   New Delhi-110 001   INDIA. 
  Telefax:  23741542/ 23741537 
  E-mail:  dgsafeguards@nic.in
 
 8. All known interested parties are also being addressed separately.   
 9. Any other party to the investigation who wi shes to be considered as an interested party 
may submit its request so as to reach the Director General (Safeguards) within 21 days from the date of this notice.      (S. S. RANA) 
 Director General (Safeguards)  
  
__________    2005-06 2006-07 2007-08 2008-09 
(First half) 
Share of domestic 
production 92% 93% 75% 51%