Government ends safeguard probe on aluminium imports from China

NEW DELHI: The Revenue Department has terminated review of safeguard duty on import of certain aluminium products from China, as the domestic industry did not press for continuation of the levy.

"The review safeguard investigation...concerning imports of aluminium flat rolled products and aluminium foil into India from China is hereby terminated," a Finance Ministry notification said.

The review investigation started in February 2011 was terminated as the applicants, including, the Aluminium Association of India, sought end of the probe.

The Directorate General of Safeguard in the Revenue Department said the investigation has become "infructuous" upon request for withdrawal of the probe application.

The government had imposed safeguard duty of 12-14 per cent on aluminium flat rolled products and at 25-30 per cent on aluminium foil for two-years ending March 2011.

However in February, the domestic industry moved the Directorate seeking review for continued imposition of the duty for another two-years saying the imports were causing 'market disruption'.

In the application, the industry said the expiry of safeguard duty would cause damage to the domestic industry and also submitted evidences of continued imports and threat to market disruption in support of their claim.

The aluminium flat rolled products and aluminium foil import from China increased by 28.87 per cent and 28.36 per cent in 2010-11 against 2009-10 even during the period of imposition of safeguard duty.

A country imposes safeguard duty to give temporary relief to domestic producers while they adjust to the pricing tactics of competitive foreign players.