Final Finding issued in Bilateral Safeguard Investigation concerning imports of “Polybutadiene Rubber” into India from Korea under India-Korea Comprehensive Economic Partnership Agreement (Bilateral Safeguard Measures) Rules, 2017 (22.10.2020)

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

  1. The imports of product from Korea has increased and constitutes “increased imports” within the meaning of rules and Korea-India CEPA.
  2. The increase imports have caused serious injury to the domestic industry.
  3. 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.