Page 216 - COMBINED QUESTIONS AND ANSWERS - EDITION 2019 - PART II_Neat

(ii) There is clear evidence that imports have not taken place in such increased
quantities and under such circumstances as to cause or threaten to cause market
disruption to the domestic industry.

(iii) There is clear evidence that imports have taken place in such increased quantities
and under such circumstances as to cause or threaten to cause market disruption to
the domestic industry delay in imposition of provisional safeguard duty would cause
irreparable damage to the domestic industry.

(iv) None of the above
A-844: iii - There is clear evidence that imports have taken place in such increased quantities and
under such circumstances as to cause or threaten to cause market disruption to the
domestic industry delay in imposition of provisional safeguard duty would cause irreparable
damage to the domestic industry
Q-845: The Indian government may impose a safeguard duty of notification on
(i) Articles after concluding that increased imported quantity
(ii) Under current conditions will cause
(iii) Threaten to cause serious injury to domestic industry

(iv) All of the above
A-845: iv - All of the above
Q-846: Five points on safeguard duty on imported goods, imposing by the Government
A-846: (i) The sudden increase in imports as the increased quantity of imports may be either
an absolute increase or an increase relative to domestic production.
(ii) A type of safety-valve built into the WTO to protect domestic producers temporarily
while they adjust in order to become more competitive with foreign producers.
(iii) The form of increased duties to higher than bound rate or standard rates or
quantitative restrictions on imports.
(iv) Investigating authorities must evaluate all relevant factors having a bearing on the
condition of the industry, including the absolute and relative rate and amount of
increase in imports, the market share taken by the increased imports, as well as
changes in the level of sales, production, productivity, capacity, utilisation, profit and
losses, and employment of the domestic industry.
(v) Applicable for four years from the date of its imposition unless revoked earlier. The
Central Government is of the opinion that the domestic industry has taken measures
to adjust or injury threat and it is necessary to be imposed further and it may extend
the specified period.
(vi) It cannot be imposed beyond a period of ten years from the date on which duty was
first imposed.
Q-847: Explain the applicability of safeguard duty under the Customs Tariff Act, 1975 on articles
imported by EOU/SEZ unit and cleared as such into domestic tariff area (DTA).

A-847: Section 8B(2A) of Customs Tariff Act, 1975, provides for levy of safeguard duty on
articles imported by an 100% EOU/unit in a SEZ that are cleared as such into DTA. In such
cases, safeguard duty shall be levied on that portion of the article so cleared as was leviable
when it was imported into India.

211