WORLD TRADE  
ORGANIZATION  G/SG/N/16/IND/3/Suppl.2 
5 November 2009 
 (09-5529) 
Committee on Safeguards Original:   English 
  
 
NOTIFICATION RELATING TO THE TRANSITIONAL PRODUCT-SPECIFIC 
SAFEGUARD MEASURE PURSUANT TO SECTION 16 OF PART I  
OF THE PROTOCOL ON THE ACCESSION OF  
THE PEOPLE'S REPUBLIC OF CHINA 
 
INDIA 
 
(Soda Ash)
 
 
Supplement  
 
  The following communication, dated 4 November 2009, is being circulated at the request of the Delegation of India.    
_______________ 
 
 
1. Provide evidence of serious injury or  threat thereof caused by increased imports 
 
Increased Imports 
 
Table 1
 
 
Soda Ash Imports from China Quantity (In MT)   
  2006-07 2007-08 2008-09 2009-10 
Q1 17,836 2,256 10,046 1,10,329 
Q2 19,112 6,362 10,716 - 
Q3 7,929 21,268 20,261 - 
Q4 16 7,804 67,624 - 
 
It is seen from the table above  that increase in imports continued even after imposition of 
provisional safeguard duty at the rate of 20 per cent w.e.f. 20 April 2009.   G/SG/N/16/IND/3/Suppl.2 
Page 2  
 
  Relative increase in imports 
 
Table 2
 
 
Market Share (%) 
Year China Domestic 
Producers Others 
Q1 0.01 94.19 5.81 
Q2 0.91 91.91 7.18 
Q3 0 92.68 7.32 2005-06 
Q4 0.72 93.11 6.17 
Q1 3.07 86.80 10.14 
Q2 3.63 84.58 11.79 
Q3 1.46 88.16 10.38 2006-07 
Q4 0.00 93.76 6.24 
Q1 0.42 90.30 9.28 
Q2 1.34 85.35 13.31 
Q3 3.36 78.75 17.89 2007-08 
Q4 1.27 84.01 14.72 
Q1 1.82 89.07 9.11 
Q2 2.00 87.61 10.39 
Q3 4.05 87.38 8.57 2008-09 
Q4 11.62 82.57 5.80 
2009-10 Q1 17.74 75.63 6.62 
 
The table given above shows that the imports fro m China increased in relative terms too.   
 
Import prices 
 
Table 3  
 
Import Prices – China (Rs./MT) 
 2005-06 2006-07 2007-08 2008-09 2009-10 
Q1 37,817 8,503 9,184 12,559 10,008 
Q2 8,765 8,492 10,540 15,721  
Q3 - 8,824 10,300 13,221  
Q4 8,794 44,446 12,393 10,649  
 
From the above table, it is evident that the incr ease in imports from China is at lower value.    G/SG/N/16/IND/3/Suppl.2 
 Page 3 
 
 
  Share of domestic market taken by increased imports from China 
 
The table below gives information about market share of domestic industry:   
 
Table 4  
 
Market Share (%) 
Quarter China Domestic 
Producers Others 
05-06Q1 0.01 94.19 5.81 
05-06Q2 0.91 91.91 7.18 
05-06Q3 - 92.68 7.32 
05-06Q4 0.72 93.11 6.17 
06-07Q1 3.07 86.80 10.14 
06-07Q2 3.63 84.58 11.79 
06-07Q3 1.46 88.16 10.38 
06-07Q4 0.00 93.76 6.24 
07-08Q1 0.42 90.30 9.28 
07-08Q2 1.34 85.35 13.31 
07-08Q3 3.36 78.75 17.89 
07-08Q4 1.27 84.01 14.72 
08-09Q1 1.82 89.07 9.11 
08-09Q2 2.00 87.61 10.39 
08-09Q3 4.05 87.38 8.57 
08-09Q4 11.62 82.57 5.80 
09-10Q1 17.74 75.63 6.62 
 
It is noticed that share of imports from other countries has also fallen and thus the share of 
domestic industry has been taken by imports from China.    
Change in level of Sales 
 
The table below gives quarter wise sales by domestic industry.   
 
Table 5
 
 
Sales (MT) Quarters 
2005-06 2006-07 2007-08 2008-09 2009-10 
Q1 4,88,794 5,04,532 4,83,558 4,92,142 4,70,319 
Q2 5,07,359 4,45,663 4,05,514 4,68,751  
Q3 4,90,616 4,77,618 4,98,893 4,36,845  
Q4 5,17,577 5,31,127 5,14,964 4,80,476  
 G/SG/N/16/IND/3/Suppl.2 
Page 4  
 
  Table 6
 
 
Sales (MT) 
 2005-06 2006-07 2007-08 2008-09 2009-10 
July 1,72,221 1,49,000 1,54,029 1,66,172 1,50,528 
August 1,60,070 1,46,524 1,22,933 1,60,381 1,31,586 
 
It is noted that there is fall in sales even after imposition of provisional safeguard duty at the 
rate of 20 per cent w.e.f 20 April 2009.    
Production  
 
The tables below gives gross production by domestic industry as well production net of 
export quarter wise.    
Table 7
 
 
Gross Production (MT) 
 2005-06 2006-07 2007-08 2008-09 2009-10 
Q1 5,65,853 5,15,924 5,32,360 5,12,342 5,34,576 
Q2 5,68,648 4,87,595 4,25,305 5,11,118  
Q3 6,07,843 5,40,916 5,51,124 5,42,399  
Q4 5,49,985 5,79,708 5,76,499 5,28,162  
 
Table 8  
 
Production Net of Exports (MT) 
 2005-06 2006-07 2007-08 2008-09 2009-10 
Q1 5,08,720 4,88,405 4,94,992 4,83,482 4,79,999 
Q2 5,19,054 4,57,960 4,08,555 4,78,414  
Q3 5,37,702 4,83,958 5,20,302 5,04,626  
Q4 4,80,705 5,24,963 5,23,591 4,68,523  
 
Table 9  
 
Gross Production (MT) 
 2005-06 2006-07 2007-08 2008-09 2009-10 
July 1,89,678 1,60,644 1,59,520 1,76,042 1,52,989 
August 1,90,952 1,61,811 1,26,703 1,74,905 1,62,539 
  G/SG/N/16/IND/3/Suppl.2 
 Page 5 
 
 
  Table 10  
 
Production Net of Export (Gross production – Exports) 
 2005-06 2006-07 2007-08 2008-09 2009-10 
July 1,75,212 1,55,571 1,56,742 1,68,272 1,29,131 
August 1,70,147 1,49,967 1,18,056 1,65,386 1,49,329 
 
It is noted that when reduction in production was noticed, the import was found to have 
increased.  The fall in sales is attributab le to increased imports from China.   
 
Capacity utilization  
 
The table below gives information about  capacity and capacity utilization.   
 
Table 11  
 
Capacity Utilisation 
 2005-06 2006-07 2007-08 2008-09 2009-10 
Q1 84 87 81 71 74 
Q2 84 81 79 71  
Q3 90 80 87 75  
Q4 89 85 80 73  
 
Table 11A  
 
Capacity Utilisation 
 2005-06 2006-07 2007-08 2008-09 2009-10 
July 84.27 81.04 83.09 73.38 63.77 
August 84.84 81.63 77.23 72.91 67.76 
 
 It is seen that the capacity utilization has gone down.  The fall in capacity utilization is 
attributable largely to increased imports.   
 
Profitability  
 
 The table below gives profit and loss per month.    
Table 12
 
 
Profits and loss (Rs/MT) (Indexed) 
 2005-06 2006-07 2007-08 2008-09 2009-10 
Q1 100 190 127 209 211 
Q2 97 163 34 180  
Q3 136 163 191 165  
Q4 178 152 244 264  G/SG/N/16/IND/3/Suppl.2 
Page 6  
 
   Profit and loss (Rs/MT) (Indexed) 
 2005-06 2006-07 2007-08 2008-09 2009-10 
July 93 200 47 201 147 
August 97 207 15 189 135 
 
2. Provide information on whether there is an  absolute increase in imports or an increase 
in imports relative to domestic production 
 
 As shown in the tables given above, there ha s been a significant increase in imports in 
absolute terms as well as relative to domestic production.    
3. Provide precise description of the product involved 
 
 Soda Ash covered under HS Code-283620.   
 
4. Provide precise description of the proposed measure 
 
The DG, Safeguards recommended imposition of safe guard duty at the rate of 20 per cent ad 
valorem on import of Soda Ash, falling under sub- heading 2836 20 of the First Schedule to the 
Customs Tariff Act, 1975 for one year from the date of imposition of provisional duty, when imported 
into India from the People's Republic of China.  The Standing Board on Safeguards has considered 
the recommendations of DG, Safeguards and approved the same.    5. Provide proposed date of introduction of the measure 
 
 Provisional measures are in force w.e.f. 20 April 2009.  The Standing Board on Safeguards 
has approved the recommendations of DG Safeguards to impose the Safeguard duty at 20 per cent ad 
valorem for a period of one year commencing from the date of imposition of  provisional Safeguard 
duty.   
 
6. Provide expected duration of the measure 
 
 The Standing Board in Safeguards has appr oved the recommendations of DG Safeguards to 
impose the Safeguard duty at 20 per cent ad valore m for a period of one year commencing from the 
date of imposition of provisional Safeguard duty.    
7. For a measure with a duration of more three years, provide the proposed date for the 
review (under Article 7.4) to be held not later than the mid-term of the measure, if such 
a date for the review has already been scheduled 
 
 Not applicable.    
8. If the expected duration is over one year , provide expected timetable for progressive 
liberalization of the measure. 
 
 Not applicable.    G/SG/N/16/IND/3/Suppl.2 
 Page 7 
 
 
  9. If the measure is being extended, also provide:   
 
 (i) Evidence that the industry concerne d is adjusting and that the safeguard 
measure continues to be necessary to prevent or remedy serious injury;   
 (ii) Reference to the WTO document that  notified the initial application of the 
measure;  Duration of the measure from initial application till the date at which 
it will be extended;  and 
 (iii) Precise description of the measure in pl ace prior to the date of extension (in this 
context, please note that the last sentence of Article 7.4 states that:  "A measure extended under paragraph 2 shall not be more restrictive than it was at the end 
of the initial period, and should continue to be liberalized") 
 
 Not applicable.    
10. Any other information 
 
 The provisional safeguard duty at 20 per cent ad valorem  on import of Soda ash falling under 
sub heading 2836 20 of the first schedule to the Customs Tariff Act, 1975 was imposed when imported into India of the People's Republic of Ch ina vide notification No. 37/2009–Customs dated 
20 April 2009.  Final findings regarding imposition of  safeguard duty at 20 per cent for one year was 
notified in the Gazette of India on 6 October 2009.   
 
  
__________