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Safeguard duty on phenol extended

Our Bureau

NEW DELHI, July 1

DOMESTIC producers of phenol have cause for cheer, with the Finance Ministry extending the safeguard duty on imported phenol for two more years up to June 2003.

Phenol, when imported into the country, between June 30 this year and June 29, 2002, will attract a safeguard duty of 10 per cent. The duty has been pegged at seven per cent on imports undertaken between June 30, 2002 and June 29, 2003.

The Finance Ministry's decision follows the final findings in review of the Director General (Safeguards), notified on June 21, 2001, who held that the domestic producers of phenol were facing a continued threat of serious injury from imports of phenol a nd that they would need a further period of two years to complete their restructuring plan.

The safeguard duty will, however, not apply to imports of phenol under an advance licence, subject to the condition that the commodity will not be disposed of in any manner except for utilisation in discharge of export obligation.

The Central Government had imposed a safeguard duty on phenol for a two-year period -- June 30 1999 to June 29 2001 -- based on the final findings of the Director General (Safeguards) that increased imports of phenol into India were threatening to cause serious injury to domestic producers of the product.