Distinguish between Protective Duty and Safeguard Duty under Custom Tariff Act, 1975.

Distinction between Protective Duty & Safeguard Duty Protective duties are levied by the Central Government on being satisfied that circumstances exist which render it necessary to protect industries established in India. On the other hand The Central Government may impose safeguard duty on specified imported goods, if it is satisfied that the goods are being imported in large quantities and they are causing serious injury to domestic industry. Protective Duties are industry specific while safeguard Duties are product specific. Protective Duties shall be effective only up to and inclusive of the date if any specified in the first schedule but on the other side total period of levy of the safeguard duty is 10 years. Section 7(2) of the Customs Tariff Act, 1975 provides that the Central Government may reduce or increase the duty as might be deemed fit in the case of protective duty and similarly the central government when it feels that increased imports have not caused serious injury to the domestic industry it shall refund the safeguard duty collected.