India's DGTR Probes Surge In Steel Imports As Industry Seeks Safeguard Duty

India's Directorate General of Trade Remedies has initiated an investigation into whether a safeguard duty needs to be imposed after domestic steelmakers complained of an increase in imports of certain steel flat products into the country.

According to a gazette notification, the DGTR, which comes under the Commerce Ministry, has started the investigation into imports of non-alloy and alloy steel flat products, which are used in industries including construction, capital goods, automobile, tractors, white goods, electrical panels and furniture.

The probe comes after the Indian Steel Association filed a complaint with the DGTR alleging a "recent, sudden, sharp and significant increase in imports" which has caused "injury to the domestic industry."

Indian Steel Association members include leading domestic steel companies such as ArcelorMittal Nippon Steel India, JSW Steel, Bhushan Power & Steel, Jindal Steel and Power and Steel Authority of India Ltd.

The companies alleged that a safeguard duty is required as ASEAN countries, mainly China, have plans to ramp up crude steel production capacity, which might lead to cheaper products flooding India. They also cited the fact that several countries have imposed multiple trade remedy measures against imports of steel products, so India should too.

"The authority considers that there is sufficient prima facie evidence to justify the initiation of the safeguard investigation under the Customs Tariff Act, 1975 and the Customs Tariff (Identification and Assessment of Safeguard Duty) Rules, 1997," it said.

The companies have requested imposition of safeguard measures for a period of four years and have also provided an adjustment plan since they have sought imposition of safeguard duties for a period exceeding one year.

While the Ministry of Steel is in favour of curtailing imports, the ball now lies in the court of the Commerce Ministry to make a recommendation in this regard.