Product description – The product under investigation is “Polybutadiene Rubber”. Polybutadiene is a synthetic rubber that is a polymer formed from the polymerization of the monomer 1,3-butadiene. The product is produced in 5 grades which can be differentiated on the basis of the catalyst used in production. The grades may be identified as: Neodymium, Cobalt, Nickel, Titanium and Lithium. Scope of product under consideration includes Neodymium, Cobalt and Nickel grades, excluding titanium and lithium grades.
HS Code – 40022000
Uses – It is used in the manufacture of tyres mainly and is also used as an additive to improve the mechanical strength of plastics such as polystyrene and acrylonitrile butadiene styrene.
Countries involved – Korea RP
Applicants – M/s Reliance Industries Limited
Date of initiation –7th November 2019
Period of investigation – April 2015-March 2016, April 2016-March 2017, April 2017-March 2018, April 2018-March 2019 and April 2019-June 2019, July 2019- September 2019.
Date of levy of provisional duty (if any, with Customs Notification No.) – 12th May 2020 imposed through Notification No.31/2020- Customs dated 13th July, 2020.
Proposed duty – Bilateral Safeguard Measures recommended for a period of two years from the date of imposition of provisional duty.
|Year||Bilateral Safeguard Measures|
|First Year||Increase the rate of customs duty @ 100% to the level of Most Favoured Nation applied rate of customs duty|
|Second Year||Increase the rate of customs duty @ 75% to the level of Most Favoured Nation applied rate of customs duty|
Key findings –
- The imports of product from Korea has increased and constitutes “increased imports” within the meaning of rules and Korea-India CEPA.
- The increase imports have caused serious injury to the domestic industry.
- There exists a causal link between the increased imports of the originating good due to the reduction or elimination of custom duty under Korea-India CEPA and serious injury to the domestic industry.