THE GAZbTTEOFINDIA: EXTRAORDINARY

[PART II—SEC. 3 (i)]

OFFICE OF THE DIRECTOR GENERAL (SAFEGUARDS)

NOTICE OF REVIEW OF SAFEGUARD DUTY EXEMPTION

New Delhi, the 21st November, 2001

Sub: Review of Safeguard duty exemption on imports of Acetone into India from notified developing countries - regarding.

[Under Rule 18 of the Customs Tariff (Identification and Assessment of Safeguard Duty) Rules, 1997 (hereinaf-

ter referred to as the SGD Rules) read with Section 8B of the Customs Tariff Act 1975]

G.S.R. 872(E).—The notice initiating investigation for levy of safeguard duty concerning imports of Acetone into

India was issued on 16.06.99 under Rule 6 of the SGD Rules Final findings were issued under Rule 11(1) of the said Rules

on 07.10.99 and published in the Gazette of India (Extraordinary) Part II-Section-3-Sub-section (i)) on 04.11.99, recommend-

ing safeguard duty to be imposed @ 28% advalorem during the 1 st year, @ 21% advalorem during the Second year and @

9% advalorem during the balance six months on imports of Acetone into India being the minimum necessary for the

protection of the domestic industry from the serious injury threatened to be caused by the increased imports of Acetone.

In exercise of powers conferred by sub section (!) 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.7/2000-Customs dated 27.01.2000 imposed on Acetone, falling under sub-heading number 2914.11 of

.the First Schedule to the said Customs Tariff Act, when imported into India, a safeguard duty at the rate of;

(a) 28% advalorem or Rs.3,000 per metric tonne, whichever is lower, if imported upto and inclusive of 26.01.2001;

(b) 21% advalorem or Rs.2250 per metric tonne, whichever is lower, ifimportedonoraftcr27.01,2001 butnotlater

than 26.01.2002; and

<c) 9% advalorem or Rs.965 per metric tonne, whichever is lower, if imported on or after 27.01.2002 but not later

than 26.07.2002.

Further the said notification exempted, inter aha, levy of safeguard duty on imports of Acetone from notified

developing countries under Clause (a) of sub-section (6) of Section 8Bof Customs Tariff Act 1975, other than South Africa.

It has been informed to the Department of Revenue, Ministry of Finance, New Delhi that the imports of Acetone

into India from Singapore, a notified developing country as per notification No. 103/98-Customs dated 14.12.98, between

April 2001 to early September 2001 were 1000 metric tonne constituting 9.9% of the total imports of Acetone during this

period. The imports being in excess of the de-minimis level stipulated under Section 8B of the Customs Tariff Act 1975 make

them ineligible for availing the exemption benefits extended by the aforesaid Notification No. 7/2000-CUSTOMS dated 27^th

lanuary 2000. It has been requested that the exemption from safeguard duty available to imports originating from Singapore

may be revoked. Further it has also been requested thai the share of imports from various developing countries exporting

Acetone to India may be re-determined for any exemption from safeguard duty to be made available to them on imports of

Acetone.

The matter has been examined and it appears that prima facie the imports of Acetone from Singapore 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 the notified developing

countries arc eligible tp the exemption from payment of safeguard duty on imports of Acetone.

All the interested parties may make their views known and submit documentary evidence by 3 ]. 12.2001 to:

The Director General (Safeguard),

5^th Floor,'D' block,

Indraprasthfl Bhawan,

New Delhi-110002

India

IF. No. SG/INV/1/99 (REV)1

R. K. GUPTA, Director General

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and Published by the Controller of Publications, Dclhi-l 10034