Product Specific 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.
Rules 9 to 17 of the 2002 rules follow the same path as the 1997 safeguard rules, with one difference of substance: the test is "market disruption" and the duty applies to imports from the People's Republic of China. They deal with preliminary findings, provisional duty, final findings, levy, non-discrimination, commencement, refund, duration and review.
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). The text says nothing on whether section 8C of the Customs Tariff Act, 1975 is still operative, so check whether the section and these rules remain in force before relying on them. Later notifications should also be checked.
A preliminary finding is possible only in critical circumstances, and provisional duty lasts not more than two hundred days. Final findings are due within 8 months of initiation or a longer period the Central Government allows. Duty applies to all imports of the article from the People's Republic of China, ceases after four years unless extended on the Government's opinion, and never continues beyond ten years. Reviews finish within 8 months.
Rule 9: preliminary findings
In critical circumstances, the Director General may record preliminary findings on "market disruption" or "threat of market disruption" (9(1)). He issues a public notice (9(2)) and sends a copy to the Ministries dealing with Commerce and Finance (9(3)). The critical circumstances definition is in rule 2(b); see our article on Rules 1 to 8.
Rule 10: provisional duty
The Central Government may, under section 8C(2) of the Act, impose provisional duty on the basis of the preliminary findings. The duty remains in force only for a period not exceeding two hundred days from the date it was imposed.
Rule 11: final findings
Within 8 months of initiation, or within such extended period as the Central Government may allow, the Director General determines whether (a) increased imports have caused or threatened to cause market disruption to the domestic industry and (b) a causal link exists. He also recommends:
- the amount of duty which, if levied, would be adequate to prevent or remedy market disruption (11(2)); and
- the duration of levy of duty (11(3)).
An affirmative finding contains all information on facts, law and reasons (11(4)); a public notice records it (11(5)); copies go to the Commerce and Finance Ministries (11(6)). Unlike the 1997 rules, this rule has no requirement to recommend progressive liberalisation.
Rule 12: levy
Rule 12(1): the Central Government may impose, by notification in the Gazette, on imports of the article covered by the final findings, safeguard duty under section 8C not exceeding the amount found adequate to prevent or remedy market disruption. Rule 12(2): if the final finding is negative, contrary to the prima facie evidence on which the investigation began, the Government must within thirty days of publication withdraw any provisional duty imposed under section 8C(2).
Rule 13: non-discrimination
Any duty under rule 10 or 12 applies on a non-discriminatory basis to all imports of the article from the People's Republic of China.
Rule 14: commencement
14(1): duty takes effect from publication of the imposing notification in the Gazette. 14(2): where provisional duty was levied and the Director General recorded a finding that increased imports caused or threaten to cause market disruption, the notification must specify that the duty takes effect from the date of levy of provisional duty.
Rule 15: refund
If duty imposed after the investigation is lower than provisional duty already imposed and collected, the differential is refunded to the importer.
| Stage | 2002 rules | 1997 rules |
|---|---|---|
| Test | Market disruption | Serious injury |
| Preliminary finding | Critical circumstances only | Critical circumstances only |
| Provisional duty cap | Two hundred days | Two hundred days |
| Final findings | 8 months or extended | 8 months or extended |
| Source of imports | People's Republic of China | All sources |
| Liberalisation | Not provided | Required if longer than one year |
Rule 16: duration
Necessary period and the four-year rule
Rule 16(1): the duty under rule 12 is only for such period as may be necessary to prevent or remedy market disruption. Rule 16(2): unless revoked earlier, it ceases to have effect on the expiry of four years from the date of imposition.
Extension
The first proviso: if the Central Government is of the opinion that the article continues to be imported into India from the People's Republic of China in such increased quantities as to cause or threaten market disruption, and that the duty should continue, it may extend the period. The second proviso: in no case beyond ten years from the date on which the duty was first imposed.
In the 1997 rules, extension turns on the industry having taken adjustment measures. Here it turns on continued imports in increased quantities causing or threatening market disruption. See Rules 16 to 18 of the 1997 rules for the comparison.
Rule 17: review
The Director General, from time to time, reviews the need for continued imposition. If satisfied on information received that (i) the duty is necessary to prevent or remedy market disruption, he recommends continued imposition; or (ii) there is no justification, he recommends withdrawal. A proviso: where the period exceeds three years, he reviews not later than the mid-term and, if appropriate, recommends withdrawal or variation of the duty. A review is concluded within 8 months of initiation or a longer period the Central Government allows (17(2)). Rules 5, 6, 7 and 11 apply mutatis mutandis (17(3)).
The Annexure
The Annexure (see rule 8) lists the factors and the causation rule already described in the earlier article: objective and quantifiable factors, including share of the domestic market taken by increased imports, and no attribution to imports of market disruption caused by other factors.
An example
Corvus Textiles buys a component from China. Imports of that component surge, and the Director General finds critical circumstances and records preliminary findings. Provisional duty is imposed. The final finding is made within eight months of initiation and recommends a duty and a duration. The Government notifies the duty to take effect from the date of provisional duty. Because the final duty is lower than the provisional duty collected, rule 15 requires a refund of the difference to Corvus. Four years after imposition the duty ceases unless the Government extends it under the first proviso to rule 16(2), and it can never run past ten years from the first imposition.
Because the rules rest on a specific section of the Customs Tariff Act, a business should first confirm that the section and the rules are currently operative. Our legal consultation team can help with that check and with any refund claim.
Need help with a duty or refund under these rules?
Dates matter: two hundred days for provisional duty, eight months for findings, four years for expiry. Our legal consultation team can map them to your shipments and check whether the provisions currently apply.
Key takeaways
- Preliminary findings are made only in critical circumstances; provisional duty lasts not more than two hundred days.
- Final findings: 8 months from initiation, or longer if the Government allows.
- Duty applies to all imports of the article from the People's Republic of China.
- Duty ceases after four years unless extended, and not beyond ten years from first imposition.
- A mid-term review is required where the duty exceeds three years; reviews take up to 8 months.
- Check whether section 8C and these rules remain in force.
Read next
- Rules 1-8: definitions, initiation, principles and market disruption
- Rules 16-18 of the 1997 safeguard rules: duration, liberalisation and review
- Rules 9-15 of the 1997 safeguard rules
- Safeguard and countervailing duty explained
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.