WORLD TRADE  
ORGANIZATION  G/SG/N/16/IND/4 
9 February 2009 
 (09-0573) 
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
) 
  
 The following communication, dated 5 February 20 09, is being circulated at the request of the 
Delegation of India.    
_______________ 
 
 
Under Rule 6 of the Custom Tariff (Tra nsitional Product Specific Safeguard Duty) 
Rules, 2002 
 
New Delhi, 27 January 2009 
 
No. D-22011/46/08 
 
An application has been filed before me U nder Rules 5 of the Custom Tariff (Transitional 
Product Specific Safeguard Duty) Rules, 2002 by M/s. Aluminium Association of India, 118, 
1
st Floor, Ramanashree Arcade, 18, M.G. Road, Bangalore-560 001 and M/s Hindalco Industries 
Limited, "Century Bhavan", 3rd Floor, Dr. A nnie Besant Road, Worli Mumbai for imposition of 
Safeguard duty on imports of Aluminium Flat Rolled Products and Aluminium Foil into India from 
People's Republic of China to protect the domestic  producers of Aluminium Flat Rolled Products and 
Aluminium Foil against market disruption caused or threatening to be caused by the increased imports 
from People's Republic of China.    1. Domestic Industry  
The application has been filed by M/s. Aluminium Association of India, 118, 1st Floor, 
Ramanashree Arcade, 18, M.G. Road, Bangalo re-560 001.  One of its member companies 
M/s. Hindalco Industries Limited has provided relevant financial informa tion to file this application.  
M/s Hindalco Industries Limited c onstitute 70.66 per cent of total domestic production of Aluminium 
Flat Rolled Products and 56 per cent of total do mestic production of Aluminium Foil, as per 
production records of 2007-08.  M/s Aluminium Association of India supported by M/s Hindalco Industries Limited constitutes major share of the total production of products  involved and thus the 
applicant is the domestic Industry in terms of s ubsection 7 of Section 8C of the Customs Tariff 
Act, 1975.  They have requested for imposition of  Safeguard duty on imports of Aluminium Flat 
Rolled Products and Aluminium Foil into India from People's Republic of China.   G/SG/N/16/IND/4 
Page 2  
 
  2. Product Involved 
 
The applicant has alleged that increased im ports of Aluminium Flat Rolled Products and 
Aluminium Foil from People's Republic of China in to India have threatened to cause market 
disruption to domestic industry.  Aluminium Flat Ro lled Products and Aluminium Foil is classified as 
below:   
 
Name of the Products Customs Tariff Heading 
Aluminium Flat Rolled 
Products 76061110, 76061190, 76061200, 76069110, 76069120, 
76069190, 76069210, 76069290 
Aluminium foil  76071110, 76071190, 76071910, 76071991, 76071992, 
76071993, 76071994, 76071995, 76071999, 76072010, 76072090  
 3. Increased Imports 
 
Imports of Aluminium Flat Rolled Products and Aluminium Foil from People's Republic of 
China into India have shown an increasing trend in absolute terms as well as compared to the 
domestic production.  It has also been noticed that the rate of increase in imports from People's Republic of China is significantly higher than th at from countries other than People's Republic of 
China.  The statistics relating to imports of Al uminium Flat Rolled Products and Aluminium Foil 
during 2005-06 to 2008-09 (April 08 to December 08) is as under.   
 
Table 1
 
 
 Units  2005-
06 Avg. 
per 
Month2006-
07 Avg. 
per 
Month2007-
08 Avg. 
per 
Month  April-
Dec-
08 Avg. per 
Month  
Aluminium 
FRP                    
All 
countries MT 26,046 2170.5 36,968 3080.6 48,274 4022.8 33,925 3769.4 
Trend Indexed 100 100 142 142 185 185 174 174 
China MT 9,853 821 16,155 1346 26,617 2218 22,287 2476 
Trend Indexed 100 100 164 164 270 270 339 302 
Other 
Countries MT 16,193 1349 20,814 1734 21,657 1805 11,639 1293 
Trend  Indexed 100 100 129 129 134 134 96 96 
Aluminium 
Foil           
All 
countries MT 20,263 1689 24,082 2007 39,390 3282 34,422 3825 
Trend Indexed 100 100 119 119 194 194 226 226 
China MT 5,437 453 10,777 898 23,925 1994 27,534 3059 
Trend Indexed 100 100 198 198 440 440 675 675 
Other 
Countries MT 14,826 1235 13,304 1109 15,465 1289 6,889 765 
Trend Indexed 100 100 90 90 104 104 62 62 
  G/SG/N/16/IND/4 
 Page 3 
 
 
  Table 2  
 
Market Share of Domestic Industries for Aluminium Flat Rolled Products (FRP)  
Market Share in Demand  Unit  2005-06  2006-07  2007-08  April-08 to 
Dec-08  
Total Indian Industry % 84.99 80.71 78.34  77.35 
HINDALCO % 49.31 49.17 44.20 41.67 
Imports from China % 5.68 8.43 11.94 14.88 
Other Countries-Imports % 9.33 10.86 9.72 7.77 
 
Table 3  
 
Market Share of Domestic Industries for Aluminium Foil  
Market Share in Demand  Unit 2005-06  2006-07  2007-08  April-08 to Nov-08  
Total of Indian Industry %  67.26  64.00 52.75 46.97 
HINDALCO %  41.67 38.10 29.25 25.80 
Imports from China %  8.78 16.11 28.70  42.42 
Other Countries-Imports  %  23.96 19.89 18.55  10.61 
 
4. Market Disruption  
The analysis of the information available with the Directorate General Indicates loss of sales 
volume compared to the total domestic market.  Th ere is decline in average production per month as 
well as in capacity utilization during April to December 2008 compared to  that in 2007-08 (Table 4).  
It is also seen that the imports were significantly  cheaper than the domestic industry product and thus 
imports are undercutting the prices of the domestic i ndustry.  Further, decline in manpower employed 
has also been noticed (Table 5).   
 
Table 4
 
 
(a) Aluminium Flat Rolled Products 
 
  Unit  2005-
06 2006-07  2007-08  April-Dec-08  
Capacity  MT 175,000 205,000 205,000 153,750 
Production MT 187,678 207,908 212,424 138,913 
Capacity 
Utilization % 107.24 101.42 103.62 90.35 
 
(b) Aluminium Foil 
 
  Unit  2005-06  2006-07  2007-08  April-Dec-08  
Capacity  MT  40,000  40,000  40,000  30,000 
Production MT  28,567 28,360 27,558  19,043 
Capacity Utilization %  71.42 70.90 68.90 63.48 
 G/SG/N/16/IND/4 
Page 4  
 
  Table 5
 
 
Man Power Deployment 
 
Year / Month  FRP  FOIL  
2005-06 3,076 1,565 
2006-07 3,145 1,565 
Apr'07 3,404 1,575 
May'07 3,427 1,560  
Jun'07 3,312 1,572  
Jul'07 3,262 1,572  
Aug'07 3,199 1,512  
Sep'07 3,182  1,511  
Oct'07 3,212  1,499  
Nov'07 3,062 1,493  
Dec'07 3,090 1,534  
Jan'08 3,074 1,518  
Feb'08 3,085 1,521 
Mar'08 3,059 1,475 
Apr'08 3,076 1,467  
May'08 3,116 1,479  
Jun'08 3,121 1,513  
Jul'08 3,122 1,459  
Aug'08 3,071 1,455  
Sep'08 3,029 1,459  
Oct'08 2,976 1,451  
Nov'08 2,935 1,466 
Dec'08 2,911 1,449  
 
5. The domestic producers have requested for im position of Safeguard duty on imports of 
Aluminium Flat Rolled Products and Aluminium Foil originating from People's Republic of China for 
a period of four years.  They have also requested  for imposition of provisional Safeguard duty in light 
of critical circumstances, leading to damage  which would be difficult to repair.   
 6. The application has been examined and it app ears that prima facie increased imports of 
Aluminium Flat Rolled Products and Aluminium Foil from People's Republic of China have 
caused/threatened to cause market disruption to the domestic producers of Aluminium Flat Rolled 
Products and Aluminium Foil and accordingly it has been  decided to initiate an investigation through 
this notice.    7. All interested parties may make their view known by 27 February 2009 to:   
 
The Director General (Safeguards) 
Bhai Vir Singh Marg, Bhai Vir Singh Shaitya Sadan:  2nd Floor, Gole Market, New Delhi-110001 
India 
Telefax:  23741542/23741537 E-mail:  dgsafeguards@nic.in  G/SG/N/16/IND/4 
 Page 5 
 
 
  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.   
 
sd/ 
(S. S. RANA) 
Director General (Safeguards ) 
 
 
 
__________