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REGISTERED No. D. 221

The Gazette of India

EXTRAORDINARY

PART I—Section 1

PUBLISHED BY AUTHORITY

No. 154] NEW DELHI, MONDAY, DECEMBER 14, 1964/AGRAHAYANA 23, 1886

Separate paging is given to this Part in order that it may be filed as a separate compilation

MINISTRY OF COMMERCE

RESOLUTIONS

TARIFFS

New Delhi, the 14th December 1964

No. 10 (2) -Tar/64.—The Tariff Commission has submitted its Report on the Continuance of protection to the Caustic Soda Industry on the basis of an inquiry undertaken by it under sections 11 (e) and 13 of the Tariff Commission Act, 1951- its recommendations are as follows:—

(1) Protection granted to the caustic soda industry should be continued for a further period of three years ending 31st December, 1967 at the existing rates of protective duty, namely, 70 per cent ad valorem (Preferential) and 80 per cent ad valorem. (Standard), exclusive of the surcharge and the countervailing excise duty. These rates of duty are subject to suitable adjustments with the revision of the existing tariff values to afford the same degree of protection.

(2) The expansion of the caustic soda industry should be encouraged despite the loss of chlorine which is inevitable for some time. (3) The alternative suggestions of Tata Chemicals Ltd., namely, the adjustment in the levies on furnace oil in a manner that will bring about economic parity between the use of furnace oil and coal, or the allocation of only high grade coal for the use of the caustic soda industry, may be examined by Government.

(4) The prospective producer of barium carbonate in the country, namely, Barium Chemicals Ltd., may lose the incentive to start production of the chemical if it is permitted to import the material for distribu- tion within the country. If the trading profits are attractive the Company may have no inducement to commence indigenous produc- tion early.

(5) Future plans for the chemical industry should include the establish- ment at suitable places of chlorine-based industries. The possibili- ties of exporting both chlorine and chlorine-based products should also be explored more fully. In this connection incentives for ex- port inclusive of freight concessions, could profitably be increased.

( 1 5 0 1)

(6) In order to encourage the use of caustic soda in the form of lye some concession in railway freight rate should be shown in its favour.

(7) It would be in the interest of the industry if the railways reconsider the entire issue relating to the freight rate for movement of salt in bulk and take a favourable and early decision in the matter in view of the fact that caustic soda and soda ash are basic chemicals for the industrial development of the country.

(8) Increases in electricity rates for supplies of power to the caustic soda industry should be examined on their own merits by the State Elec- tricity Boards against the background of industrial development in the State.

(9) The desirable provision in the Maharashtra State Electricity Rules for concession in the cost of power to the industry may be implemented by the Government of Maharashtra as early as possible This may be emulated by other State Governments.

(10) Though in a situation of scarcity no system of distribution would be accepted as ideal, still the producers of caustic soda should conceive of an arrangement which would not encourage creation of artificial scarcity and consequent inflation of prices.

(11) As far as possible the manufacturers of caustic soda should make direct contacts with large consumers for estimating their demand and then channel their distribution through their agents and distri- butors. So far as the small consumers are concerned, it would be in the interest of smooth distribution to offer their requirements through recognised institutions or Government Departments, by fixing a suitable quota for each State.

(12) Decontrol of prices of caustic soda and other products was meant to serve as an incentive to increase production rather than as an opportunity for profiteering. The caustic soda industry should, therefore, exercise reasonable self-restraint in its price policy.

2. Government have given careful consideration to recommendation (1) but hftvinfi regard to the progress the industry has made so far and the fact that in the present circumstances there is no Likelihood of any unhealthy competition from imports; Government consider that tariff protection to the Caustic Soda Industry need not be continued beyond 31st December, 1964. The existing statu- tory rates of duty of 70 per cent ad valorem (preferential) and 80 per cent ad valorem (standard) will, however, continue. With effect from 1st December, 1964 an exemption notification issued by the Ministry of Finance (Department of Revenue and Company Law) has exempted Caustic Soda from payment of so much of customs duty leviable thereon under the Tariff as is in excess of 40 per cant ad valorem (preferential) and 50 per cent ad valorevi (standard), as a result of abolition of tariff values on Caustic Soda with effect from the same date. Necessary legislation to implement Government decisions will be undertaken in Parliament in due course.

3. Government have taken note of recommendations (2) to (7) and steps will be taken to implement them as far as possible.

4. Attention of the State Governments is drawn to recommendations (8) andl (9). Attention of the Government of Maharashtra is also drawn to recommenda- tion (9).

6. Attention of the producers of caustic soda is drawn to recommendation (10) and that of manufacturers of caustic soda and the small consumers is drawn to recommendation (11).

6. Attention of the caustic soda industry is invited to recommendation (12).

ORDKH

Ordered that the Resolution be published in the Gazette of India and a copy thereof communicated to all concerned.

No. 10(3)-Tar/64.—The Tariff Commission has submitted its Report on the continuance of protection to the Soda Ash Industry on the basis of an inquiry undertaken by it under sections ll(e) and 13 of the Tariff Commission Act, 1951. Its recommendations are as follows: —

(1) Protection to the soda ash industry should be continued for a further period of three years from 1st January 1965 to 31st December, 1967 and the existing rates of protective duties, namely, Rs. 11-32 per quintal (Standard) and Rs 8 • 37 per quintal (Preferential) exclusive of the additional import duty and the countervailing excise duty, should remain in force.

(2) If the railways could accept some alternative protective measures for the wagons carrying salt and enable soda ash manufacturers to avail them- selves of the rate under classification 35-A^of the Goods Tariff. It would help considerably a basic industry like the manufacture of soda ash.

(3) Rationalisation of the railway freight structure, taking into consideration the necessity for the development of a basic chemical industry like the production of soda ash, might mitigate the hardship of the industry by reducing the incidence of Transport cost on its operations.

(4) The railway freight structure in respect of limestone used by the chemi- cal industries may be reviewed from the fresh angle of approach. (5) The railway authorities should re-examine the issue of allowing Station- to-station freight rates for the transport of limestone required by manufacturers of soda ash.

(6) Conservation of mineral resources is a very Important aspect of planning and economic development and, therefore, a more discriminating use of limestone should be enforced under the supervision of a suitable authority.

(7) So long as B.P. hard coke is an important raw material for modified Solvay Process which has been permitted iri the case of Sahu Chemi- cals it would only be fair if the allotment of coke is made according to quality needed to the various producers of soda ash keeping in view their special requirements.

(8) Any facile assumption that self-sufficiency has already been reached in respect of soda ash production in the country is untenable. There is not only the need for the existing producers to make up the lee-way and expand further, if possible, but also there is necessity for at least one or two more new units to go into production as early as possible,

(9) Any further development of the soda ash industry In the Eastern and Southern regions of the country may have to adopt the modified Solvay Process to obviate the necessity of obtaining limestone from long dist- ance for which there is a large competing demand.

(10) A reorganisation of the soda ash industry to achieve sizable economies in production should be a matter for earnest consideration by the industry,

(11) Decontrol of prices should not have been construed by the manufacturers of soda ash as an occasion Cor making substantial price changes. A certain amount of self-restraint on the part of producers In a protected industry is called for with regard to thfeir price policy"and this is very necessary in the interests of national development

2. Government have Riven careful consideration to these recommendations but having regard to the progress the industry has made so far and the fact that in th" present circumstances there Is no likelihood of any unhealthy competition from imports, Government consider that tarifT protection to Soda Ash Industry need not be continued beyond 31st December, 1964.

Government, however, propose to coniinue. for the time being, the rate of duty as at present. Necessary legislation to implement Government's decision will he undertaken in due course.

3. Government have taken note of recommendations (2) to (7) and necessary action will be taken to the extent possible.

4. Attention of the Soda Ash Industry and Manufacturers of Soda Ash is drawn to recommendations (7) to (11).

ORDER

Ordered that the Resolution be published In the Gazette of India and a copy thereof be communicated to all concerned.

No. 12(l)-Tar/G4.—The TarifT Commission has submitted its Report on the continuance of protection to the Calcium Carbide Industry on the basis of an in- quiry undertaken by it under Sections 11 (e) and 13 of the Tariff Commission Act, 1951. Its recommendations are as follows: —

(1) Protection granted to the calcium carbide industry should bo continu- ed for two years more till 31st December 19G6 at the existing rate of duty, that Is, 50 per cent ad valorem, exclusive of surcharge.

(2) The Government of Uttar Pradesh should be persuaded to relax its restrictive policy and make lime-stone deposits at Kota available to manufacturers of calcium carbide as well which, it appears, is possi- ble without prejudice to the interest of its cement factory.

(3) It is the .spirit behindi the Electricity Rules of the Government of Maharashtra which is relevant to the issue of concessional duty on electricity and if the unilateral concession offered were motivated by a desire to assist deserving industries, the request of Calico Mills-— Chemical Division can be met by the State Government bv a suit- able amendment widening the scope of the exemption In the Rules.

(4) Since calcium carbide is an iinportnnt Industrial raw material, its pro- ducers, in the discharge of their obligations to consumers, should at all times take particular care to ensure that their selling prices bear a reasonable relationship to costs and spare no efforts to brine down costs in which urocess as in case of raw materials and power Govern- ment should afford them all facilities.

(5) Industrial Chemicals Limited should not shift to "B" grade output by changing its raw materials since apait. from the question of its t>ast reputation the maintenance of its Droducticn of {Trade "A" with a gas yield comparing favourably with cjrade "B" of other producers would be necessary for this company to sustain its competitive posi- tion in distant markets.

2 Government have Riven careful consideration to these recommendations but having regard to the progress the industry has made so far and the fact that in the present circumstances there is no likelihood of any unhealthy comnetition from Imports. Government consider that tariff protection to the Calcium Carbide industry need not be continued beyond 31st December, 1964.

Government, however, propose to continue, for the time being, the rate of duty as at present. Necessary legislation to implement Government's decision will be undertaken in due course.

3. The attention of the Government of Uttar Pridesh is invited to recommen- dation (2) and of Government of Maharashtra to recommendation (3).

4. The attention of the producers of calcium carbide is invited to recom- mendation (4). Government have also taken note of last portion of the recom- mendation.

5. Attention of the Industrial Chemicals limited, Talaiyuthu, Madras is in- vited to recommendation (5).

ORDER

Ordered that the Resolution be published ;n the Gazette of India and a cepy thereof communicated to all concerned.

No. 4O)-Tar/64.—The Tariff Commission has submitted its Report on the continuance of protection to the Titanium Dioxide Industry on the basis of an inquiry undertaken by it under sections H(e) and Hi of the Tarifl Commission Act, 1951. Its recommendations are as follows;—

(11 As Travancore Titanium Products Ltd. (T.T.P.) is still passing through an important developmental stage, the tariff protection to the titanium dioxide industry may be continued for a further period of three years after 31st December 1964 when its present term is due to expire and it would be adequate if the rate of protective duty be fixed at 25 per cent ad valorem (preferential) and 35 per cent ad valorem (standard).

(2) In view of the very important hearing of the question on the economy and future development of the industry, the management of T.T.P. should, as early as possible, undertake a careful and detailed techno- economic survey of different sites offering comparable facilities before taking the final decision about the location of its new 25-tonne unit in the first phase of its expansion, It would be desirable to undertake the survev taking into account the next phase of its expansion and having due regard to the possibilities and prospects of a change-over to the chloride process in future. The attention of the Directorate General of Technical Development is also invited to this problem for giving necessary guidance and help to the Company.

(3) The need for meeting the requirements of small consumers, who lack resources for maintaining adequate stocks and cannot make spot purchases at the list nrices of the Company, should be given due consideration both by the D.G.T.D. and the selling agent.

(41 In view of the complaints of the Paint industry that its needs for special grades are not being met by T.T.P. and since its latest expan- sion of capacity offers better opportunities for diversifying its pro- duction, T.T.P. should try to meet the demand of the paint industry to the extent possible and economically iustiflable. The paint manu- facturers too should appreciate that diversification of production for a single unit In the field with comparatively limited capacity, has to be gradual.

(5) As regards the prorpss of manufacture to be adopted in its proposed 25-tonne unit at thp present stage when T.T.P. has not entered Into any irrevocable commitments the entire scheme calls for a rethink- ing on the part of the Company in the light of the latest develop- ments in the industry and also for a high level technical investiga- tion of the possibilities of adopting the chloride process in this country with suitable technical collaboration.

(6) In view of the investigations for the selection of process and location of the proposed 25-toiine unit, the period of gestation may extend beyond the Company's present estimate, To achieve possible economies in production costs meanwhile, the desirability of effecting certain extensions or readjustment to the present plant so as to remove imbalances and ensure optimum yield, may have to be considered. To avoid under-utilisation of the post-calcination equip- ment and also to step up the production of rutile grade to meet the growing demand from consuming industries for it, the installation of an additional 5-ton calclner for the rutile grade with necessary adjustments in the preparatory sections seems to be advantacenus. A careful and urgent consideration by the Company Is commended.

(7) Since the utilisation o£ valuable waste products is expected to yield a material economy In T.T.P's production costs at Trlvandrum, com- pensating for some of its locational disadvantages, the management should move energetically in bringing such a scheme to fruition as early as possible.

(8) While T.T.P. had, accordin" 1c the volume of Its orders in 1363, qualified for a naked-at-workr '(NAW) price of 50 sh. per tonne of ilmenite. the actual price paid hv it was much in excess. Evidently, in conditions of thp availability of cheaper supnlv from alternative sources, it was not justifiable on the part of T.T.P.. as a nrotected industrv, to make its purchases of ilmenite at anv higher price from F.X.P. Minerals. The obligation imposed on T.T.P. by the protective

tariff makes it incumbent on the Company to make Its purchases at the lowest available prices in the interest of reducing its cost and improving its competitive strength, eschewing other considerations.

(9) Since the quality of Manavalakurlchi ilmenlto is equally good if not better than Chavara Ilme'iite, except for the slightly lower titanium dioxide content, the use thereof holds out prospects of a significant economy in tne cost of 1hc material dup to its lower f.o.b. prices and transport charges. In future T.T.P. should consider purchases of ilmenite from Manavalakurlchi according to its availability.

(10) Since T.T.P. has not been able to avail of the technical consultancy services of British Titan Products Ltd.. It would be well advised to arrange for alternative technical consultancy service of a comparable level, particularly having regard to the expansion programme of the Company and its export obligations in future.

(11) Since the composite grade proposed to be produced by T.T.P. Is likely to fetch a price lower than the standard grade, without commensurate reduction in cost, the yield of surh non-standard products should be kept within reasonable limits having regard to the financial results involved and without extensive sacrifice of quality.

(12) In the Interest of assisting the development of the titanium dioxide industry on a sound basis, as much as of other industries serviced b^ the canal to Trivandrum, we should like to Impress on the Govern- ment of Kerala that ensuring its perennial navigability should be given due consideration on a priority basis.

2. Government have given careful consideration to these recommendations bur having regard to the progress the tndustrv has made so far and the fact that in the present circumstances there is no likelihood of anv unhealthy competition from imports, Government consider that tariff protection to titanium dioxide industry need not be continued beyond 31st December 1964.

Having regard to revenue considerations Government, however, have decided to continue the rates of duty as at present.

Necessary legislation to Implement Government decisions will be undertaken In Parliament in due course.

3. Government have taken note of recommendations (2) =m<1 (3) and steps will be taken to Implement them as far as possible. Attention of Travancore Tituninm Products Ltd . <=• nlso invited to these recommendations Attention of the selling agent, vis- T. T. Krlshnamachari & Co., is also drawn to. recommenda- tion (3).

4. Attention of the Travaneore Titanium Products Ltd. is drawn to recom- mendations (4) to (11) and that of the Paint Manufacturers to recommendation (4).

!5. Attention of the Kerala Government Is drawn to recommendation 0 2 ).

ORDER

Ordered that the Resolution be published in the Gazette of India and a copy thereof communicated to all concerned.

No. 14(1)-Tar/64.—The Tariff Commission has submitted its Rpport on the continuance of protection to the Dvestuff Industrv on the basis of an inquiry undertaken bv it under Sections l l ( e) and 13 of the Tariff Act. lBfii. Its recom- mendations are as follows:—

(1) The existinR protective duty of '0 per cent nd valorem on dyestuffs covered bv Indian Customs Tariff item Nos. 30 (15) and ?0 (1R) should be continued for n further period of three years, i.e., till 31st December, 196?, exclusive of surcharge and the countervailing excise duty.

(2) Protection should hr> granted till 31st December. 1967 to—

(i) naphthols bv converting the existing revnue duty of 50 per cent nd valorem into an equivalent protective duty; and

(ii) fast 'colour bases by the levy of a protective duty of 100 per cent ad valorem.

These duties arc exclusive of usual surcharge and countervailing excise duty.

(3) Protective duties should be levied till 31st December, 1967 on the fol- lowing:

(i) 2-amlno-anthraquinone at 45 per cent ad valorem (Preferential) and 55 per cent ad valorem (Standard).

(ii) benzanthrone at 90 per cent ad valorem (Preferential) and 100 per cent ad valorem (Standard).

(iii) B-O.N. acid (Beta Oxy Naphthoic acid) at 70 per cent ad valorem (Preferential) and 80 per cent ad valorem, (Standard).

These duties are exclusive of usuaJ surcharge and the countervailing excise duty.

(4) Thirty specific Intermediates mentioned below should be granted the concessional rates of duty of 10 per cent ad valorem (standard) and nil (preferential) and the concession should remuin in force till 31st December 1967 when the question of its further continuance should be examined:

1. Dinitro-chloro benzene. 2. O-anisidine. 3. P-anisidine. 4. Alpha naphthylamine. 5. O-toluidine. 6. O-tolidine. 7. O-nitro toluene, 8. Benzidine and benzidine dihydrochloridc. 9. 2:5-dichloro nitro benzene.

10. Laurent acid. 11. O-dichloro benzene, 12. O-nitro Chloro Benzene. 13. Meta-dinitro benzene. 14. J-Acid urea. 15. Anthraquinonc. 16. H-acid. 17. Chicago acid. 18. Gamma acid. 19. Para-nitro aniline. 20. Aceto-acetic ester. 21. P-toluidino. 22. 3:3-dichloro benzidine. 23. C-acid. 24. Aceto-acet-o-toluldine. 25. Aceto-acet-o-chlor-anilide. 26. Tobias acid. 27. Phenyl peri acid. 28. 2-chloro-4-nitro aniline. 29. Aceto-acet anilide. 30. P-toluidine-o-sulphonic acid.

(5) The existing concessional rates of duty on H-acid, Chicago-acid, Gamma- acid and J-acid urea should be extended to their corresponding salts as under, as they are required only for the manufacture of dyes:

(a) H-acid and its alkali metal salts.

(b) Chicago-acid and its alkali metal salts.

(c) Gamma acid and its alkali metal salts.

(d) J-acid urea and its alkali metal salts.

(6) Beta naphthol should continue to be exempted from the payment of countervailing excise duty till the domestic production of this com- modity is established.

(7) Since the consumption ol dimethylaniline in the dyestufE industry Is substantial the existing duty concession may be maintained on condi- tion that the manufacturer binds himself to use the intermediate in the manufacture of dyestuff only and, in the event of its use for any other purpose, to pay the difference between the concessional duty and the normal duty leviable in respect of the quantity so used.

(8) Para di-chloro benzene, dl-nitro toluene and meta nitro toluene should be removed from the concessional list and normal rates of duty of 40 per cent ad valorem (standard) and 30 per cent ad valorem (prefe- rential) may be reimposed on them.

(9) Government should try to obtain releases from their obligations under General Agreement on Tariff and Trade (GATT) to bind the import duties on the following six intermediates, namely, (1) G-Salt, (2) rhoduline acid (,di-J-acid), (.3) Nevile and Winther's acid, (4) p-amino acetanilide, (5) sodium naphthionate and naphthionic acid and (6) meta phenylene diamine so that Lhey be free to impose customs duties on them at such rates as may be found necessary.

(10) Steps may be taken to record figures of imports of pigment printing

emulsions, reactive dyes and optical whitening agents separately.

(11) (a^ As there is no firm planning with regard to the production of 12 intermediates mentioned below it would be advisable to license such of the existing units as can take up the production of these inter- mediates to the extent of the quantities needed:-—

1. Aceto acetic ester. 2. Phthalic anhydride. 3. Alpha naphthylamine. 4. O-tolidine. 3. Benzidine/benzidine dihydrochloride. 6. Chlorobenzene. 7. Phenol. 8. 3:8 dichloro benzidine. 9. 4-ehloro-2-nitro-anlline.

10. C-acid. 11. Aniline. 12. Aceto-acet-o-toluidide.

(b) In the case of eight intermediates listed below it would be desirable to license other units for their production if the plans ol the Hindustan Organic Chemicals for the manufacture of intermediates do not materialise. In that case there is also scope and need for the licens- ing of additional capacity for o-, m-, and p-toluidines:—

1. Dinitro chloro benzene. 2. Dimethyl aniline. 3. 2:5 Dichloro nitro benzene. 4. 0-&p-dichloro benzenes. 6. O-m-and p-nitro toluenes. (J, Dlnitrotpluene. 7. O-and p-nitrochloro benzenes. 8. m-dlnitrobenzene.

(12) It would be in the interest of development of the indigenous industry to encourage the domestic production of intermediates by providing whatever foreign exchange can be made available for the import of equipment in preference to the import of such intermediates which can be manufactured in the country.

(13) Government should make available adequate foreign exchange directly to the manufacturers of Intermediates to cover their leauirement* for purpose of raw materials for the intermediates l e"u l r e m e n ts

(14) Although the dyestuff industry is faced with the problems of higher t w l ^ °r ^w ™terials and other elements of cost of manufaXre there is still further scope for reduction in prices of dyestuffs

1. Fast colour bases 73% ad valorem 2. Benzanthrone 65% ad valorem (preferential) and

15% ad valorem (standard) ³" m n O TI ⁰ lC A dd S⁵£e "* vaJ<"™ (Preferential) and ORDER

TARIFFS

THE TABLE

No. I4(l)-Tar/64.—In exercise of the powers conferred by sub-section (1) of

•ection SA of the Indian Tariff Act, 1934 (32 of 1934), the Central Government

hereby directs1 that with immediate effect there shall be levied on the articles

specified in column (1) of the Table hereto annexed, when imported into India,

a duty of customs of such amount as is specified in the corresponding entry in

column (2) thereof.

TH* TABUS

Name of Articles

Amount of duty of customs [in place of the

duty specified in the First Schedule to tho

Indian Tariff Act, 1934 (32 of 1934)]

The following Itemi—

(1) 2-ftminoanthraquinone—

(a) of British manufacture

(b) not of British manufature

43 per cent ad valorem

85 per cent ad valorem

(11) Benzanthrone—

68 per cent ad valorem

75 per cant ad valorem

(a) of British manufacture

(b) not of British manufacture

(lit) Beta Oxy Naphtholc Acid—

65 per cent ad valorem

W of British manufacture

75 per cent ad valorem

(b) not of British manufacture

D. N. BANERJEE, Jt. S"cy.

winrnn> m nrou BT THE OMTCBAL MANAGER, GOVKHNMINT or IOTJA PRM"-

IWVT H UH Aim F U W J WW vr w MAIUOM or PUW.KATION", VKMI, 1W