WORLD TRADE  
ORGANIZATION  G/SG/N/16/IND/3 
9 February 2009 
 (09-0572) 
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 
 
(Soda Ash)
 
  
 The following communication, dated 4 February 20 09, is being circulated at the request of the 
Delegation of India.    
_______________ 
 
 
 Under Rule 6 of the Custom Tariff  
 (Transitional Product Specific Safeguard Duty) Rules, 2002   New Delhi, 16 January 2009  
 No. D-22011/02/09 
  An application has been filed before me U nder Rules 5 of the Custom Tariff (Transitional 
Product Specific Safeguard Duty) Rules, 2002 by Al kali Manufacturers Association of India (AMAI), 
3
rd Floor, Pankaj Chambers, Preet Vihar Commerc ial complex, Vikas Marg, Delhi-110092, for 
imposition of Safeguard  duty on imports of Soda Ash into India from People's Republic of China to 
protect the domestic producers of Soda Ash 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 on behalf of M/ s Tata Chemicals Ltd. Andheri (East), Mumbai, 
M/s Gujarat Heavy Chemicals Limited, Noida, M/ s Saurashtra Chemicals Limited, Birla Sagar, 
Porbandar, Gujarat, M./s DCW Ltd, Nariman Po int, Mumbai and M/s Nirma Ltd., Bhavnagar, 
Gujarat, whose production of Soda Ash account for mo re than 90 per cent of the domestic production, 
for imposition of Safeguard duty as well as quantitative r estrictions on imports of Soda Ash into India 
from People's Republic of China.   
 
2. Product Involved 
 
 The applicant have alleged that increased im ports of Disodium Car bonate popularly known as 
Soda Ash from People's Republic of China into India have threatened to cause market disruption to 
domestic industry.  The product has chemical formula Na
2CO 3.  Soda Ash is a white, crystalline, 
water-soluble material.  Soda Ash is classified as below:   G/SG/N/16/IND/3 
Page 2  
 
   
Name of the 
Products HSN 
Chapter 
Heading Customs 
Tariff Heading ITC Heading 
Soda ash  2836.20 28362010 
28362020 
28362090 28362010 
28362020 
28362090 
 
The domestic industries produce Soda Ash by Solv ay Process or modifications commonly known as 
Dual Process and Akzo Dry Lime Process.   
 
3. Increased Imports 
 
 Imports of Soda Ash from People's Republic of China into India have shown an increasing trend in absolute terms as well as compared to the domestic production.  The statistics relating to 
imports of Soda Ash during 2005-06 to 2008-09 (April 08 to December 08) is as under.   
 
Table 1
 
 
  Import volume (MT) Import volume (MT)/Month 
2005-06 10,063 839 
2006-07 47,252 3,938 
2007-08 45,771 3,814 
April-Oct. 08 28,284 4,041 
Nov. 2008 10,000 10,000 
Dec. 2008 15,000 15,000 
 Source:  China Customs for the period up to Oct. 08 Industry estimates for Nov. & Dec., 08.   
 
4. Market Disruption 
 
 There has been significant decline in the dema nd in the world market where China has been 
exporting while their exports to India have increased .  At the same time th ere has been creation of 
fresh capacities which has led to significant unutilized  free disposable capacities in China.  Further, 
the import prices from China is found to be sign ificantly lower than prices prevailing in India 
indicating imported goods have ente red and are likely to enter at prices that will have a significant 
depressing or suppressing effect on domestic prices,  causing disruption in the domestic market.  
Moreover, the inventories with the domestic indus try have increased by almost 280 per cent between 
Nov. 2008 and Jan. 2009.  The Table 2 below shows that average weekly domestic sales volumes are 
significantly lower than production volumes leading to critical pile up of inventory.  The production 
cost of domestic industries (confidential) has been  found to be significantly higher than the landed 
cost of such imported goods.    
Table 2
 
 
 Average stockAverage weekly 
production Average weekly 
domestic sales 
1/11 to 7/11/08 47721 42329 21439 
8/11 to 14/11/08 51598 41516 19324 
15/11 to 21/11/08 54008 41432 22201 
22/11 to 30/11/08 60521 52285 24623 
1/12 to 7/12/08 62611 40105 17074  G/SG/N/16/IND/3 
 Page 3 
 
 
   Average stockAverage weekly 
production Average weekly 
domestic sales 
8/12 to 14/12/08 70611 42607 17136 
15/12 to 21/12/08 80049 43936 18576 
22/12 to 31/12/08 88752 55971 26170 
1/1 to 7/1/09 97047 38219 12802 
Closing inventory 109799   
 
5. The domestic producers have requested for imposition of Safeguard duty as well as 
quantitative restrictions on imports of Soda Ash or iginating 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 Soda 
Ash from People's Republic of China have threaten ed to cause market disruption to the domestic 
producers of Soda Ash and accordingly it has been d ecided to initiate an investigation through this 
notice.    7. All interested parties may make their view known by 16 February 2009 to:   
 
The Director General (Safeguards) 
Bhai Vir Singh Marg, 
Bhai Vir Singh Shaitya Sadan:  2
nd Floor, 
Gole Market, New Delhi-110001 India 
Telefax:  23741542/23741537 
E-mail:  dgsafeguards@nic.in
  
 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.   
 
   (S. S. RANA)  Director General (Safeguards) 
 
  
__________