Page 515 - MANUAL OF SOP

Manual of OP for Trade Remedy Investigations

importing Member does not exceed 3 per cent, provided that developing country
Members with less than 3 per cent import share collectively account for not more
than 9 per cent of total imports of the product concerned. Even though World
Bank, OECD etc. have different lists, the detailed trade notice indicating names of
developing countries as per Indian Customs is placed at Annexure-I.

21.49 As per provisions of sub-para (4) of section 8B, the duty imposed under
this section shall, unless revoked earlier, cease to have effect on the expiry of four
years from the date of such imposition. However, if the Central Government is of
the opinion that the domestic industry has taken measures to adjust to such injury
or threat thereof and it is necessary that the safeguard duty should continue to be
imposed, it may extend the period of such imposition subject to a maximum period
of ten years from the date on which such duty was first imposed.

Unforeseen Developments and Causal Link
21.50 The WTO Agreement on Safeguards read with Article XIX of GATT obligates
the national authorities to examine “unforeseen developments” that led to the
increase in imports and the consequent serious injury to the DI . However, domestic
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laws/rules do not impose any such obligation on the Authority to analyse the
unforeseen developments as a result of which the increased imports have occurred.
The legal provisions neither contain any parameters that must be verified to identify
the unforeseen developments nor do they specify any methodology that must be
followed in the analysis of such unforeseen developments. However, in view of
WTO requirements , the Authority has consistently been examining the issue of
“unforeseen developments” in its investigations.

21.51 During the course of investigation,the temporal nature of the increase in
imports of the PUC is established leading to serious injury to the DI or threat of such
serious injury, which must be unforeseen or unexpected and factual.

Causal Link
21.52 A determination of serious injury cannot be made unless there is objective
evidence of the existence of a causal link between increased imports of the product
concerned and serious injury. Further, when factors other than increased imports
are causing injury to the domestic industry at the same time, such injury must not
be attributed to increased imports.

3 Refer to Para XXI of Chapter 24 for WTO Jurisprudence.

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