WORLD TRADE  
ORGANIZATION  G/SG/N/7/IND/8 
G/SG/N/8/IND/19 
G/SG/N/11/IND/5 
23 November 2009 
 (09-5820) 
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  
 
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2 
OF THE AGREEMENT ON SAFEGUARDS 
 
INDIA 
 
(Sodium Hydroxide, also known as Caustic Soda
) 
  
 The following communication, dated 12 November 2009, is being circulated at the request of 
the Delegation of India.    
_______________  
  
 In continuation to WTO notification G/SG /N/6/IND/27 dated 15 September 2009.   
 
1. Evidence of Serious injury or threa t thereof caused by increased import 
 
The import of the subject product has shown incr ease in the past.  The in crease is significantly 
sharp during the recent period.  The import has gone up in relative terms also.  The market share of 
the domestic producers fell down to 79.80 per cent in July 2009, which was 98.86 per cent in July 2008.  There has been fall in cumulative sal es by all domestic producers after the increased 
import.  The production has fallen despite the in crease in demand in the domestic market.  The 
capacity utilization of all the Indian pro ducers taken together has declined.   
 
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/7/IND/8 
G/SG/N/8/IND/19 G/SG/N/11/IND/5 
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  Table 1 
 
Quarterly Imports (DMT) {Dry Metric Ton} 
Quarter 2006-07 2007-08 2008-09 2009-10
Q 1 33641 32149 59180 101227 
Q 2 15762 18149 38933  
Q 3 45114 59299 6062  
Q 4 20186 22614 82173  
 
Table 2 
 
Quantity of Imports (DMT) 
July 2009 43164 
July 2008 2082 
 
 Relative increase in imports:  The share of import in the total market size of India has been 
as follows:   
 
Table 3 
 
Share of Imports in Total Market Size (%) 
Quarter 2006-07 2007-08 2008-09 2009-10 
Q 1 6.95 6.84 11.93 18.29 
Q 2 3.43 3.94 8.10  
Q 3 9.11 12.03 1.37  
Q 4 4.32 4.75 15.57  
 
 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 recommended imposition of a provisional 
safeguard duty at the rate of 20 per cent ad valore m for a period of 200 days on import into India of 
Caustic Soda Lye falling under subheading 28151200 of the First Schedule of the Customs Tariff 
Act, 1975.  The Standing Board on Safeguard de cided to accept the recommendations of the DG 
Safeguards to levy the provisional safeguard duty at the rate of 15 per cent ad valorem for a period of 
three months.    G/SG/N/7/IND/8 
 G/SG/N/8/IND/19 
 G/SG/N/11/IND/5 
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  5. Proposed date of introduction of measure 
 
 From the date of notification to be issued by the Government.   
 
6. Expected duration of the measure 
 
 Three months from the date of issue of Ministry of Finance, Department of Revenue notification.   
 
7. Further information 
 
 The preliminary findings were published in Gazette of India on 15 October 2009.   
 8. Offer of consultations 
 
 The Government of India offers consultati ons on the provisional safeguard measures as per 
Article 12.4 of the Agreement on Safeguards.   
 
 
 
 
_______________ 
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  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 
 
 Provisional safeguard duty at the rate of 15 per cent ad valorem for a period of three months 
when imported into India.   
 
2. Specify the product subject to the measure 
 
 Caustic Soda Lye falling under sub-heading 28 151200 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  
 
 The share of import of all developing countries except China, Indonesia,  Qatar, Saudi Arabia 
and Thailand do not exceed 3 per cent individually and therefore imports from other developing 
countries will not be subject to safeguard duty.   
 
   
_______________ 
  G/SG/N/7/IND/8 
 G/SG/N/8/IND/19 
 G/SG/N/11/IND/5 
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  Notification under Article 12.4 to the Committee on Safeguards before taking a provisional safeguard 
measure referred to in Article 6 
 
1. Specify the product subject to the proposed provisional safeguard measure  
 Caustic Soda Lye falling under sub-heading 28 151200 of the First Schedule of the Customs 
Tariff Act, 1975.  2. Specify the proposed provisional safeguard measure 
 
 Provisional safeguard duty at the rate of 15 per cent ad valorem for a period of three months 
when imported into India.    3. Specify the proposed date of introduction of the provisional safeguard measure 
 
 From the date of issue of notification by the Government of India.   
 
4. Specify the expected duration of the provisional safeguard measure, if any decision on 
the duration of the measure has been made 
 
 Three months from the date of issue of notification by the Government of India.    
5. Provide the basis for:   
 
 (i) making a preliminary determination, as  provided for in Article 6, that increased 
imports have caused or are threateni ng to cause serious injury;  and, 
  (ii) Determining that there are critical circumstances where delay would cause 
damage which it would be difficult to repair 
 
The import of the subject product has shown incr ease in the past.  The in crease is significantly 
sharp during the recent period.  The import has gone up in relative terms also.  The market share of 
the domestic producers fell down to 79.80 per cent in July 2009, which was 98.86 per cent in July 2008.  There has been fall in cumulative sal es by all domestic producers after the increased 
import.  The production has fallen despite the in crease in demand in the domestic market.  The 
capacity utilization of all the Indian producers take n together has declined.  All these circumstances 
led to preliminary determination and the dela y would have caused irreparable damage.   
   
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