Trade dept suggests final safeguard duty on some flat steel imports for 3 yrs

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 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.

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 in April had already imposed a provisional 12% safeguard duty 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 will be levied if import prices are equal to or above $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 price point for colour coated steel products and $961 per tonne for metallic coated steel coils.

The association had alleged that there was a sudden, sharp and significant increase in the volume of imports, which caused serious injury to the domestic industry in India and that imports took place in such increased quantities and under such circumstances that cause and threaten to cause serious injury to the domestic industry.

China, Korea, Japan, Vietnam and Nepal are the top exporters of these goods to India.

The DGTR noted that taking into account the current serious injury to the domestic industry, and the imminent threat of injury due to the imports of subject goods, the fair selling price and, considering competing interest of all stakeholders, the authority recommends imposition of the duty on certain steel products. The finance ministry imposes these duties.