Page 507 - MANUAL OF SOP

Manual of OP for Trade Remedy Investigations

(6) For the purposes of this section,
(a) “developing country” means a country notified by the Central
Government in the Official Gazette for the purposes of this
section;
(b) “domestic industry” means the producers

(i) as a whole of the like article or a directly competitive
article in India; or
(ii) whose collective output of the like article or a directly
competitive article in India constitutes a major share
of the total production of the said article in India;
(c) “serious injury” means an injury causing significant overall
impairment in the position of a domestic industry;

(d) “threat of serious injury” means a clear and imminent danger
of serious injury.

(7) Every notification issued under this section shall, as soon as may be
after it is issued, be laid before each House of Parliament.
21.5 The Central Government has notified the Rules called the Customs Tariff
(Identification and Assessment of Safeguard Duty) Rules, 1997 (SG Rules), detailing
the process for conducting investigation for safeguard measures (text attached at
the end of the chapter). The application format has been prescribed vide Trade
Notice SG/TN/1/97 dated 6.9.1997.

SIGNIFICANCE

21.6 When imports of a particular product suddenly increase to a point that they
cause or threaten to cause serious injury to domestic producers of like or directly
competitive products, a safeguard duty is used as temporary relief. Safeguard
duties give domestic producers a period of grace to become more competitive vis-
à-vis imports. Safeguard measures are defined as “emergency” actions to address
serious injury to the importing Member’s domestic industry (Article 2) for a particular
product.

21.7 The Safeguard duties are applicable against all the countries with uniform
rate of duty unlike the anti-dumping duties.

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