Circumstances in which transitional product safeguard duty can be imposed:

Central Government can impose the transitional product safeguard duty if it is satisfied that,

a. Any article is imported into India in increased quantities from the People‘s Republic of China;

b. Such increased importation is causing or threatening to cause market disruption to domestic industry.

The duty is imposed by issuing a notification in the Official Gazette.

‘Market disruption’ shall be caused whenever imports of a like article or a directly competitive article produced by the domestic industry, increase rapidly, either absolutely or relatively, so as to be a significant cause of material injury, or threat of material injury, to the domestic industry.