The Director General (Safeguards) has conducted investigations regarding existence of ‘serious injury or threat of serious injury’ to the domestic industry as a result of imports of unwrought aluminium and has not recommended imposition of safeguard duty on such products in the final findings notification dated 13.12.2016, inter alia, on the following grounds,-

(i)    Market share, production, domestic sales and productivity of the domestic aluminium industry had improved and capacity utilization was almost at 100% during the period of investigation;

(ii)   The landed price of imports was higher than the selling prices and cost of sales of the domestic industry during the period under investigation and price undercutting was negative;

(iii)   Analysis of post period of investigation data showed that imports were decreasing whereas production and sales of domestic industry had increased;

(iv)   An injury to the domestic industry existed, but there was no serious injury or threat of serious injury to the domestic industry during the period of investigation and hence no protection under the safeguard law was required.

To protect the interest of the domestic aluminium producers, the Government of India has increased the basic customs duty on primary aluminium products in the Budget 2016-17.

This was stated by Shri Santosh Kumar Gangwar, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.

Serious injury finding: no safeguard duty recommended after imports did not threaten domestic aluminium industry; customs duty adjusted. The Director General (Safeguards) found no recommendation to impose a safeguard duty on unwrought aluminium because domestic market share, production, sales and productivity improved, capacity utilization was near full, import prices exceeded domestic selling prices (price undercutting negative), and post period data showed declining imports with increased domestic production and sales; injury existed but was not serious, and the Government increased basic customs duty on primary aluminium to protect producers.