Safeguard duty on imports of soda ash to stay

October 20, 2009 - India

The Government of India in all likelihood will extend the period of safeguard duty on import of soda ash from China, which was imposed, earlier, on a provisional basis. Soda ash is used as an input in a number of industries including detergents, float glass, soap, leather and textile.

The Directorate General of Safeguards, in its final findings, has now recommended imposition of safeguard duty for a period of one year, which starts from the date of imposition of provisional duties, which means, that the duties will be in place till April 2010.

The proposal will be implemented once it is approved by the standing board on safeguards which includes officials from commerce and finance ministries. A safeguard duty, to protect domestic industry against imports of soda ash from China was imposed provisionally till November 5, 2009, at the rate of 20 percent, in April this year.

The initial investigations were opened, on recommendations from the major soda ash manufacturers in the country like, Tata Chemicals, Gujarat Heavy Chemicals, Saurashtra Chemicals, Birla Sagar, DCW and Nirma, who account for 90 percent of the domestic production.