. /.RESTRICTEDWORLD TRADE
ORGANIZATIONG/SG/Q2/IND/4
20 April 1999
(99-1609)
Committee on Safeguards Original:  English
NOTIFICATION UNDER ARTICLE 12.1(A) OF THE AGREEMENT ON
SAFEGUARDS ON INITIATION OF AN INVESTIGATION
AND THE REASONS FOR IT
Replies to Questions posed by MEXICO1
Regarding the Notification of INDIA2
The following communication, dated 13 April 1999, has been received from the Permanent
Mission of India.
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Q.1 Taking into account that Mexico represen ts 0.64 per cent of total Indian imports of
propylene glycol, according to the data of the final decision of the investigation, and that it is the
only developing country Member whose individual share does not exceed 3 per cent, what is the
legal basis invoked by the authority not to excl ude Mexico from the application of the measure.
Reply
Safeguard duty is imposed by the Government of India under Section 8B of the Customs
Tariff Act 1975, which provides for exclusion of developing countries having individually a share of
less than 3 per cent.  The Department of Revenue had issued a list of developing countries eligible forthis exemption.  Inadvertently, Mexico was left out of this list.  Steps are being taken to rectify this
error.
Q.2 What is the legal basis invoked by the investigating authority not to give adequate
opportunity for prior consultations before applying the measure to Members having a
substantial interest as exporters, and specifically Mexico?
Reply
The investigating authority, namely the Direct or General (Safeguards), during the course of
investigation had given all the interested parties (including Mexico)  due opportunity to participate in
the investigation and submit their views.  The views given by the interested parties are addressed in
the findings of the Director General (Safeguards).
Q.3 On what facts or evidence did the Indian authority base its determination that imports
from Mexico threatened to cause in jury to its domestic industry, if Mexico has not exported any
propylene glycol to India in the last five years?
                                                     
1 G/SG/Q2/IND/3
2 G/SG/N/6/IND/4G/SG/Q2/IND/4
Page 2
Reply
The safeguard duty is imposed on a non-discriminatory basis on imports originating from all
sources.  Imports from Mexico, therefore, were no exception and were a part of the total imports
which were considered for determination of safeguard investigation.
Q.4 Could India supply data concerning propylene glycol imports from Mexico over the last
five years?
Reply
The data regarding imports of propylene glycol from Mexico for the last three years is given
below:
Year Imports
(Qty. in MT)
1995-96 577.14
1996-97 847.66
1997-98   11.18
  (Up to August 1997)
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