DGTR recommends 3-year safeguard duty on steel imports to protect local industry

New Delhi: The Directorate General of Trade Remedies (DGTR) has recommended final imposition of a safeguard duty on imports of certain flat steel products for three years to protect domestic manufacturers from a sudden jump in the inbound shipments. It has recommended 12% duty in the first year, 11.5% in the second and 11% in the third year.

The DGTR, under the commerce and industry ministry, recommended the duty in its final findings of a probe initiated on a complaint by the Indian Steel Association.

Based on the preliminary findings, the government had imposed a provisional 12% safeguard duty in April for 200 days.

"There is a recent, sudden, sharp and significant increase in imports of PUC (product under consideration) into India at the cumulative level as a result of unforeseen developments... and threaten to cause serious injury to the domestic industry/producers," the DGTR said in a notification dated August 16.

It recommended that no duty be levied if import prices are at least $675 per tonne for hot-rolled coils and sheets, around $695 per tonne for hot rolled mill plates, $824 per tonne for cold rolled coils and sheets, $964 per tonne for colour coated steel products and $961 per tonne for metallic coated steel coils.

The association had alleged a surge in imports which it said posed a serious threat to the domestic industry. China, South Korea, Japan, Vietnam and Nepal are the top exporters of these goods to India.

The DGTR recommended imposition of the duty on certain steel products after taking into account the impact on the local industry. The finance ministry imposes the duties.