The World Trade Organisation (WTO) came into existence on 1.01.95. A member of the WTO has to be a signatory to the General Agreement on Tariffs & Trade (GATT) and certain multilateral agreements. The agreement on Anti-dumping (i.e. the Agreement on the Implementation of Article VI of GATT, 1995), the Agreement on Subsidies and Countervailing Measures and the Agreement on Safeguards are some of the multilateral agreements to which a WTO Member has to be a party. India is one of the founder Members of GATT as well as of WTO and, a signatory, inter alia, to all these Agreements.
The domestic law to implement the provisions of the Agreement on Safeguards has been enacted under Section 8B and Section 8C of the Customs Tariff Act, 1975. The Customs Tariff (Identification and Assessment of Safeguard Duty) Rules, 1997 and Customs Tariff (Transitional Products Specific Safeguard Duty) Rules, 2002 govern the procedural aspects.
The Director General is required under Customs Tariff (Identification and Assessment of Safeguard Duty) Rules, 1997 to investigate the existence of ’serious injury’ or ‘threat of serious injury’ to the domestic industry as a result of increased imports of an article into India and submit his findings to the Central Government alongwith his recommendation regarding the duration and amount of safeguard duty adequate to remove the injury or threat of injury to the domestic industry. Besides, the Director General also is required to investigate cases relating to transitional safeguard duty against imports originating from China under the Customs Tariff (Transitional Product Specific Safeguard Duty) Rules, 2002. In addition, the Directorate General needs to closely coordinate with the domestic industry / trade associations.
The Directorate General has carried out 18 investigations so far as under:
Year -No. of cases
1998 -6
1999 -3
2000 -2
2001 -2
2002 -3
2003 -1
2004 -1
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