Rules explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
The Transitional Product Specific Safeguard Duty Rules, 2002 are a separate set from the general safeguard rules. They were made under section 8C of the Customs Tariff Act, 1975, and are aimed at imports from the People's Republic of China that cause or threaten "market disruption". Rules 1 to 8 give the definitions, the Director General (Specific Safeguard), the duties of that officer, how an investigation starts and runs, confidentiality and the test for market disruption.
This article reads the rules as amended up to the text as published (CBIC text, 11 June 2002; no amending notification found in CBIC's 2023-2026 lists). Whether section 8C of the Customs Tariff Act is still operative has not been checked here, and nothing in the text of these rules says either way, so check whether the section and these rules remain in force before relying on them. Later notifications should also be checked.
The rules came into force on the date of their publication in the Gazette (Notification No. 34/2002-Cus. (N.T.) dated 11-6-2002), under section 8C(6) of the Act. They concern imports from the People's Republic of China and "market disruption" or its threat. A Director General (Specific Safeguard) of at least Joint Secretary rank investigates on a written application, answers are due within thirty days, and market disruption is judged on objective, quantifiable factors.
Rule 1: title and commencement
Rule 1(i) gives the name: the Customs Tariff (Transitional Product Specific Safeguard Duty) Rules, 2002. Rule 1(ii): they come into force on the date of their publication in the Official Gazette. The preamble says they are made in exercise of the powers conferred by sub-section (6) of section 8C of the Customs Tariff Act, 1975. The Act's own text is outside this article; the rules' wording is all that is explained here. For the general safeguard rules, see our article on Rules 1 to 4 of the 1997 safeguard rules.
Rule 2: definitions
| Clause | Term | Meaning as printed |
|---|---|---|
| (a) | Act | The Customs Tariff Act, 1975 (51 of 1975) |
| (b) | Critical circumstances | Clear evidence that imports have taken place in such increased quantities and under such circumstances as to cause or threaten to cause market disruption to the domestic industry, and delay in imposing provisional safeguard duty would cause irreparable damage |
| (c) | Increased quantity | Includes increase in imports whether in absolute terms or relative to domestic production |
| (d) | Interested party | Any exporter, foreign producer or importer of the article (or a trade or business association with a majority of such members); the government of the People's Republic of China; and a producer of the like or directly competitive article in India (or an association with a majority of members who produce or trade it) |
| (e) | Like article | Identical or alike in all respects to the article under investigation under section 8C |
| (f) | Provisional duty | A safeguard duty imposed under section 8C(2) of the Act |
| (g) | Other words | Meanings given in the Act |
There is no definition of "specified country" in this set. The text deals instead with the government of the People's Republic of China by name throughout.
Rule 3: the Director General (Specific Safeguard)
The Central Government may, by notification in the Official Gazette, appoint an officer not below the rank of Joint Secretary to the Government of India, or such other officer as it thinks fit, as the Director General (Specific Safeguard) (rule 3(1)), and may provide him the services of other persons and facilities as it deems fit (rule 3(2)).
Rule 4: the Director General's duties
Subject to the rules, the Director General:
- (1) investigates the existence of "market disruption" or "threat of market disruption" to the domestic industry as a consequence of increased import of an article into India;
- (2) identifies the article liable for safeguard duty under section 8C;
- (3) submits findings, provisional or otherwise, to the Central Government on market disruption or its threat consequent upon increased import of an article from the People's Republic of China;
- (4) recommends (i) the amount of duty which, if levied, would be adequate to remove the market disruption or threat, and (ii) the duration of levy; and
- (5) reviews the need for continuance of such duty.
Compared with the 1997 rules, there is no reference to progressive liberalisation or positive adjustment in this rule.
Rule 5: initiation
Application and evidence (5(1) and (2))
Except for suo moto initiation under sub-rule (4), the Director General initiates an investigation on a written application by or on behalf of the domestic producer of the like or directly competitive article, to determine market disruption or its threat caused by imports in such increased quantities, absolute or relative to domestic production. The application, in the form he specifies, is supported by evidence of (i) increased imports, (ii) market disruption or threat, and (iii) a causal link. Unlike rule 5(2) of the 1997 rules, there is no requirement for a statement on positive adjustment.
Before initiating (5(3) and (4))
He must examine the accuracy and adequacy of the evidence and be satisfied that there is sufficient evidence of increased imports, market disruption or threat, and a causal link. He may initiate suo moto if satisfied from information from any Commissioner of Customs or any other source that such evidence exists.
Rule 6: principles governing investigations
| Sub-rule | Provision |
|---|---|
| 6(1) | Public notice on the decision, containing inter alia the article involved, date of initiation, summary statement of facts, reasons for initiation, address for representations and time limits |
| 6(2) | Copy to the Ministry dealing with Commerce and other Ministries concerned, known exporters, the Government of the People's Republic of China and other interested parties |
| 6(3) | Copy of the application to known exporters or their trade association, the Government of the People's Republic of China and the Commerce Ministry; to any other interested party on written request |
| 6(4) | Information notice answered in writing within thirty days of receipt, or an extended period on sufficient cause; deemed received one week after it was sent by registered post or transmitted to the diplomatic representative of China |
| 6(5) | Industrial users, and consumer organisations for retail goods, may furnish information |
| 6(6) | Oral information counts only when later submitted in writing |
| 6(7) | Evidence from one interested party is made available to the others |
| 6(8) | Refusal of access, failure to provide information in a reasonable period, or significant impeding of the investigation allows findings on the facts available |
Rule 7: confidential information
Rule 7(1) overrides rule 6(1), (3) and (7), rule 9(2) and rule 11(5): information that is by nature confidential or provided on a confidential basis is treated as such, upon cause being shown, and not disclosed without the provider's specific authorisation. Rule 7(2): non-confidential summary, or a statement of reasons why summarisation is not possible. Rule 7(3): if the request is not warranted, or the supplier will not make the information public or authorise disclosure in a generalised or summary form, the Director General may disregard it unless it is demonstrated to his satisfaction from appropriate sources that it is correct.
Rule 8 and the Annexure: market disruption
Rule 8 says the Director General determines market disruption or its threat taking into account, inter alia, the Annexure. The Annexure repeats the structure of the 1997 annexure. Paragraph (1): objective and quantifiable factors, in particular the rate and amount of the increase in imports in absolute and relative terms, the share of the domestic market taken by increased imports, and changes in sales, production, productivity, capacity utilisation, profits and losses, and employment. Paragraph (2): a determination requires objective evidence of a causal link; where other factors cause market disruption at the same time, it is not attributed to increased imports; the Director General may refer the complaint to the anti-dumping or countervailing duty authority as appropriate.
An example: an Indian maker of a consumer product sees imports from China rise sharply in a year, in absolute terms and relative to its own production. It applies under rule 5 with evidence of the increase, the market disruption and the link between them. If the Director General is satisfied on that evidence, he issues a public notice under rule 6, and the Government of China is sent a copy.
The findings, levy, duration and review rules continue in Rules 9 to 17. If you want to understand how these rules could affect your imports, our legal consultation team can help.
Need help with a product specific safeguard question?
Because the rules rest on a specific section of the Customs Tariff Act, the first question is whether they currently apply to your product. Our legal consultation team can check the current position and explain how an investigation would affect you.
Key takeaways
- These rules implement section 8C of the Customs Tariff Act and concern imports from the People's Republic of China.
- Market disruption or its threat replaces the "serious injury" test of the 1997 rules.
- The Director General (Specific Safeguard) must be at least Joint Secretary rank unless the Government thinks otherwise.
- Initiation needs evidence of increased imports, market disruption and a causal link; no positive adjustment statement is required.
- Information notices carry a thirty-day deadline.
- Check whether section 8C and these rules remain in force before relying on them.
Read next
- Rules 9-17: findings, levy, duration and review
- Rules 1-4 of the 1997 safeguard rules
- Safeguard and countervailing duty explained
- Types of customs duty: BCD, IGST, safeguard, anti-dumping
Disclaimer: Based on the Customs Tariff Act rules named above as published on the CBIC Tax Information Portal or in the Gazette, as consulted on 3 October 2026. Later notifications, duty notifications and the Customs Tariff Act, 1975 should be checked. This article is general information, not legal advice; check the official text before acting.