WORLD TRADE  
ORGANIZATION  G/SG/N/7/IND/7 
G/SG/N/8/IND/18 1 July 2009 
 
(09-3209) 
Committee on Safeguards Original:   English 
  
 
NOTIFICATION UNDER ARTICLE 12.4 OF THE AGREEMENT 
ON SAFEGUARDS BEFORE TAKING A PROVISIONAL 
SAFEGUARD MEASURE REFERRED TO IN ARTICLE 6 
 
NOTIFICATION UNDER ARTICLE 12.1(B) OF THE  
AGREEMENT ON SAFEGUARDS ON FINDING A SERIOUS INJURY  
OR THREAT THEREOF CAUSED BY INCREASED IMPORTS  
 
INDIA 
 
(Plain Particle Board
) 
   The following communication, dated 30 June 2009,  is being circulated at the request of the 
Delegation of India.  
_______________  
 
 
1. Evidence of serious injury or threat thereof caused by increased import 
 
The import of the product under consideration has shown sudden, significant, unexpected 
rapid increase.  The rate of increase in production was even below the rate of increase in demand.  
The capacity utilization of the domestic producers dr astically declined in April-Dec. 2008 with the 
sudden significant increase in the import.  The I ndian producers lost sales volume in April-Dec. 2008 
with surge in import even when demand was incr easing and Indian producers are selling at loss 
making prices.  Market share of domestic producers declined while market share of import increased 
in April-Dec. 2008.  The market sh are declined steeply in April-Dece mber 2008.  Profitability of the 
domestic industry has fallen significantly.    
2. Information on whether there is an absolute increase in import or an increase in import 
relative to domestic production  
 
It is seen from the table given below that th e import of the product under consideration has 
shown sudden, significant and unexpected rapid increase in absolute terms.  Despite some increase in 
production in April 08 and Dec. 08, the Indian industry has lost significant market share to import or in demand during the recent period.   G/SG/N/7/IND/7 
G/SG/N/8/IND/18 Page 2 
 
 
   
 Imports 
volume  Imports per 
month  Increase/ 
decline vis-à-
vis previous 
year Indian 
production  Indian 
production  
per month  Imports in 
relation to 
production
 CBM CBM  CBM CBM % 
2005-06 64,343 5,362  66,707 5,559 96.46 
2006-07 57,030 4,752 -11.4% 101,331 8,444 56.28 
2007-08 65,152 5,429 14.2% 130,887 10,907 49.78 
April-Dec 08 82,621 9,180 69.1% 107,807 11,979 76.64 
 
 It is also seen from the table given below that  there has been increased in import in a relation 
to production and consumption in India.    
Year  2005-06 2006-07 2007-08 April-Dec 08 
Imports (MT) 1 64,343 57,030 65,152 82,621 
Indian production  
(MT) 2 66,707 101,331 130,887 107,807 
Total quantity Available (M T) 3=1+2 131,050 158,360 196,039 190,428 
Share of import % 4=1/3 49.10 36.01 33.23 43.39 
Share of domestic  
production % 5=2/3 50.90 63.99 66.77 56.61 
Sales of domestic industry 6 20,143 44,780 64,710 43,665 
Captive consumption 7 45,849 59,803 62,403 64,906 
Consumption in India 8=1+6 130,335 161,613 192,266 191,193 
Market share in 
consumption/demand      
Import 9=1/8 49.37 35.29 33.89 43.21 
Indian Industry including 
captive 10=(6+7)/8 50.63 64.71 66.11 56.79 
 
3. Precise description of the product involved 
 
 Plain Particle Board classifiable under sub h eading No. 4410 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 a provisional 
safeguard duty of 30 per cent at the rate of ad-valor em on import of Particle Board, Oriented Standard 
Board (OSB) and similar Boards (for example, Wa fer board) of Wood or other Ligneous Materials, 
also known as Plain/Raw/Coloured Particle/Fib re Particle/Bagasse/Bamb oo/Jute/Panel Boards, 
whether or not agglomerated with resins or ot her organic binding substances, falling under Customs 
Tariff subheading 4410.  However, no safeguard dut y has been recommended to be levied on import 
of particle boards laminated with veneer  or papers or decorative laminate.   
  G/SG/N/7/IND/7 
 G/SG/N/8/IND/18 
 Page 3 
 
 
   Moreover, for the import for which anti dumpi ng duty is or would be applicable, safeguard 
duty for such import will be the difference of th e provisional safeguard duty proposed above and the 
applicable antidumping duty.  Further, for the import for which applicable anti dumping duty would 
be more than the provisional safeguard duty, no safe guard duty shall be levied on such import.   
 
5. Import from Developing Countries 
 
Source Qty CBM Share 
Above 3%   
Malaysia 50402 61.00% 
Thailand 15397 18.64% 
Bangladesh 4141 5.01% 
 
 Since export of the product from all other deve loping countries taken together is below 9 per 
cent of total import into India, all developing na tions except Malaysia, Thailand and Bangladesh may 
not attract safeguard duty.   
 
6.  Proposed date of introduction of measure  
 
 Not available.    7. Expected duration of the measure 
 
 Not available.    
8. Further information 
  The Preliminary findings were published in  the Gazette of India on 4 May 2009.   
   
__________