WORLD TRADE  
ORGANIZATION  G/SG/N/8/IND/20 
G/SG/N/10/IND/11 
G/SG/N/11/IND/6 
29 April 2010 
 (10-2315) 
Committee on Safeguards Original:   English 
  
 
NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT ON  
SAFEGUARDS ON FINDING A SERIOUS INJURYOR THREAT  
THEREOF CAUSED BY INCREASED IMPORTS 
 
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 
 
(Caustic Soda Lye
) 
   The following communication, dated 26 April 2010, 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 the subject product has shown incr ease in the past.  The in crease is significantly 
sharp and sudden during the recent period.  The import has gone up in relative terms also.  The market 
share of import has gone up to 36.16 per cent in the second quarter of 2009-2010 from 4.99 per cent 
in the corresponding period in 2008-09 which is the highest during the period under consideration.  
There has been fall in growth in sales of domestic pr oducers after the increased import at lower prices.  
The production has not increased even after incr eased import and increased installed capacity.  The 
capacity utilization of all the Indian producers taken together has declined.  The profit of the domestic 
industry has gone down.    2. Information on whether there is an absolute  increase in import or an increase in import 
relative to domestic production 
 
Increased Import: 
  The table below gives the Quarterly import figu res relating to caustic soda in lye form.   G/SG/N/8/IND/20 
G/SG/N/10/IND/11 G/SG/N/11/IND/6 
Page 2 
  
  Table 1 
 
Quarterly Imports(DMT){Dry Metric Ton} 
Quarter 2006-07 2007-08 2008-09 2009-10
Q 1 33641 32149 68760 96260
Q 2 15762 18149 28949  322622
Q 3 45114 59299 6786  
Q 4 20186 22614 73928  
 
Relative increase in imports: 
 
 The share of import in the total market  size of India has been as follows:   
 
Table 2 
 
Share of Imports in Total Market Size (%) 
Quarter 2006-07 2007-08 2008-09 2009-10 
Q 1 6.71 6.12 12.36 15.17 
Q 2 3.23 3.38 4.99 36.16 
Q 3 8.46 10.46 1.34  
Q 4 3.90 3.96 12.4  
 
 It is seen from the tables given above that the import has increased in absolute as well in 
relative terms.   
 
3. Precise description of the product involved 
 
 Caustic Soda lye falling under subheading 281 51200 of the First Schedule of the Customs 
Tariff Act, 1975.   
 
4. Precise description of the proposed measure 
 
 DG, Safeguards, the competent authority, has confirmed the provisional safeguard duty 
at the rate of 15 per cent ad valorem for a period from 4 December 2009 to 3 March 2010 already imposed on import into India of Caustic Soda Lye falling under subheading 28151200 of 
the First Schedule of the Customs Tariff Act, 1975.    
5. Proposed date of introduction of measure 
  DG, Safeguards has recommended safeguard duty on definitive basis, for three months only 
from 04 December 2009 to 3 March 2010.    
6. Expected duration of the measure 
  As in 5 above.   
 
7. Further information 
 
 The final findings were published in Gazette of India on 9 April 2010.    G/SG/N/8/IND/20 
 G/SG/N/10/IND/11 
 G/SG/N/11/IND/6 
 Page 3 
  
  Notification to the Committee on Safeguards of non-application of safeguard measure to 
developing countries under Article 9.1 of the Agreement on Safeguards (Footnote 2) 
  
1. Specify the measure 
 
 Definitive safeguard duty at the rate of 15 per cent ad valorem when imported into India, has 
been recommended by DG, Safeguard s, the competent authority.   
 
2. Specify the product subject to the measure 
 
 Caustic Soda lye falling under subheading 281 51200 of the First Schedule of the Customs 
Tariff Act, 1975.   
 
3. Specify the developing countries to which the measure is not applied under Article 9.1 of 
the Agreement on Safeguards, and the import  shares of these countries individually and 
collectively 
 
 As the import from developing nations except China, Indonesia, Qatar, Saudi Arabia and 
Thailand do not exceed 3 per cent individually, the import of product under consideration originating 
from developing nations except those mentioned above may not attract safeguard duty.   
   
__________