Steel Makers Hail Commerce Ministry For Recommending Safeguard Duty On Flat Steel Imports
The 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.
The domestic steel industry has welcomed the commerce ministry's move to recommend imposition of a safeguard duty on imports of certain flat steel products, saying that such measures help India become self-reliant in the sector.
In a statement, Naveen Jindal, President of Indian Steel Association (ISA), said recommendation of a safeguard duty on flat steel imports for three years is a welcome step.
"While the proposed 12% duty may not fully reflect the geopolitical context where 25% is often considered the norm, it demonstrates clear government support for using such measures to promote Aatmanirbhar Bharat in steel," he said.
Jindal, who is also the chairman of Jindal Steel, said introducing a safety net through minimum import prices, below which the recommended duty would be triggered, is also a positive move to protect and support the downstream industry.
The Directorate General of Trade Remedies (DGTR), under the Ministry of Commerce, 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.
DGTR is the apex authority for administering all trade remedial measures, including anti-dumping, countervailing duties and safeguard measures.
The duty was recommended by the DGTR 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 has already imposed a provisional 12% safeguard duty for 200 days.
Now in its final findings, the DGTR has concluded "that 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 has said in a notification.
It has recommended a 12% duty in the first year, 11.5% in the second, and 11% in the third year.
The Indian Steel Association on behalf of its members including ArcelorMittal Nippon Steel India, JSW Steel, Jindal Steel and Power and Steel Authority of India filed an application seeking imposition of safeguard duty on imports of non-alloy and alloy steel flat products.
