WORLD TRADE
ORGANIZATIONG/SG/N/6/IND/7/Suppl.1
17 December 2001
(01-6349)
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
INDIA
Supplement
The following communication, dated 27 November 2001, has been received from the
Permanent Mission of India.
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1. Please refer to letter No. GEN/PMI/WTO/20 4/36/I/2001 dated 26 November 2001 forwarding
therewith the Government of India's Notification No. 73/2001-CUSTOMS dated 28 June  2001
containing the Government decision on the imposition of safeguard duty on imports of Phenol into
India from notified developing countries based on review proceedings.
2. Attached herewith is a copy of the Notice of Review of Exemption from imposition of
safeguard duty on imports of Phenol into India, as conveyed through notification dated 28 June 2001
referred to in paragraph 1 above, from notified developing countries (NotificationNo. SG/INV/2/98(REV) dated 22 October 2001), issued by the Director General (Safeguards).G/SG/N/6/IND/7/Suppl.1
Page 2
OFFICE OF THE DIRECTOR GENERAL (SAFEGUARDS)
5th FLOOR, 'D' BLOCK, I.P. BHAWAN
NEW DELHI
NOTICE OF INITIATION OF A SAFEGUARD INVESTIGATION
F. No. SG/INV/2/98 (REV)       Dated:  22 October 2001
NOTICE OF REVIEW OF SAFEGUARD DUTY EXEMPTION
Sub: Review of Safeguard Duty Exemp tion on Imports of Phenol into India
From Notified Developing Countries
{Under Rule 18 of the Customs Tariff (Identification and Assessment of Safeguard Duty)
Rules 1997 (hereinafter referred to as the SGD Rules) read with Section 8B of the Customs Tariff Act1975}
*****
The notice initiating investigation concerning import of Phenol into India was issued on
2 February 1999 under Rule 6 of the SGD Rules.  Final findings were issued under Rule 11(1) of the
said Rules (published in the Gazette of India (Extraordinary) Part II-Section-3-Sub-section (i)) on
11 June 1999, recommending safeguard duty to be imposed at 22 per cent ad valorem during the first
year and at 15 per cent ad valorem  during the second year on imports of Phenol into India being the
minimum necessary for the protection of the domestic industry from the serious injury threatened tobe caused by the increased imports of Phenol.  In exercise of powers conferred by sub-section (1) of
section 8B of the Customs Tariff Act 1975 (51 of 1975) read with Rules 12 and 14 of the SGD Rules
and based on the final findings of the Director General (Safeguards), the Central Government vide
Notification No. 82/99-Customs dated 30 June 1999 imposed on Phenol, falling under sub-heading
number 2907.11 of the First Schedule to the said Customs Tariff Act, when imported into India, a
safeguard duty at the rate of:
(a) 22 per cent when imported up to and inclusive of 29 February 2000;  and
(b) 15 per cent when imported from 1 March 2000 to 29 June 2001 (both days inclusive).Further the said notification exempted, inter alia,  levy of safeguard duty on imports of Phenol
from notified developing countries under Clause (a) of sub-section (6) of Section 8B of Customs
Tariff Act 1975, other than South Africa.
2. On an application filed before me under Ru le 18 of the SGD Rules by Hindustan Organic
Chemicals Ltd. (HOC), Mumbai and Herdillia chemicals Ltd. (HCL), Mumbai, for review ofsafeguard duty imposed on imports of Phenol into India to protect the domestic producers of Phenol
against continued serious injury caused by the increased imports of Phenol into India, a notice of
review was issued on 1 January 2001 and final findings were issued on 16 May 2001 and were
published in the Gazette of India, Extraordinary on 20 June 2001.
In exercise of powers conferred by sub-sections (1) and (4) of Section 8B of the Customs
Tariff Act 1975, read with Rule 18 of the SGD Rules, the Central Government vide Notification
No. 73/2001-CUSTOMS dated 28 June 2001, after considering the aforesaid final findings in review,
imposed safeguard duty on imports of Phenol into India as under:G/SG/N/6/IND/7/Suppl.1
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(a) 10 per cent when imported from 30 June 2001 to 29 June 2002 (both days inclusive);
and
(b) 7 per cent when imported from 30 June 2002 to 29 June 2003 (both days inclusive).The notification also exempted levy of safeguard duty on imports of Phenol made from
countries notified as developing countries under clause (a) of sub-section (6) of Section 8B of the said
Customs Tariff Act.
3. It has been informed to the Department of Re venue, Ministry of Finance, New Delhi, that the
imports of Phenol into India during April to ear ly September 2001 from Brazil, China, P.R., Korea,
Singapore and South Africa constituting some of the notified developing countries listed in
Notification No. 103/98-Customs dated 14 December 1998 are much more than the de minimis  level
stipulated under Section 8B of the Customs Tariff Act 1975 to make them eligible for availing the
exemption benefits extended by the aforesaid Notification No. 73/2001-CUSTOMS dated
28 June 2001.  It has also been stated that imports from South Africa and Singapore in July 2001alone was to the extent of 3,551 tonnes, which worked out to more than 13 per cent of the total
imports of Phenol during the year 2000-2001.  It has been requested that the exemption from
safeguard duty available to imports originating from these developing countries may be revoked.
Further, the consignments that have escaped the levy, should also be subjected to safeguard duty.
4. The matter has been examined and it appears that prima facie  the imports of Phenol from the
aforementioned developing countries are more than the de minimis  level stipulated under Section 8B
of the Customs Tariff Act 1975 and accordingly it has been decided to initiate review proceedings
through this notice.  The purpose of the review is to determine whether such notified developing
countries are eligible to the exemption from payment of safeguard duty on imports of Phenol fromthese countries.
All interested parties may make their vi ews known and submit documentary evidence by
29 November 2001 to:
The Director General (Safeguards)
5
th Floor, "D" Block
Indraprastha Bhawan
New Delhi – 110 002
India
(Signed)
(R.K. Gupta)
Director General (Safeguards)
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