Section 8B of CTA, 1975 : Section 8B: Power Of Central Government To Apply Safefuard Measures

Explanation using Example

Imagine a scenario where India experiences a surge in imports of solar panels, causing distress to local manufacturers who are unable to compete with the low prices of the imported panels. In response, the government initiates an investigation and finds that the surge in imports is indeed causing serious injury to the domestic solar panel industry.

Under Section 8B of The Customs Tariff Act, 1975, the government decides to impose a safeguard duty on imported solar panels to protect the local industry. This duty is an additional charge on top of any existing tariffs and is meant to level the playing field for domestic producers.

The duty is applied only after ensuring that it complies with the conditions laid out in Section 8B, such as not affecting imports from developing countries that do not exceed certain thresholds, and considering the average level of imports over the past three years.

The safeguard measures are designed to be temporary, giving the local industry time to adjust to the market conditions, and are to be reviewed and possibly revoked or extended after four years, with a maximum application period of ten years.