India’s Directorate General of Trade Remedies (DGTR) has proposed a provisional safeguard duty of 12 per cent on steel imports, including those from China and Vietnam, in order to address the serious injury and threat to the domestic industry. The duty will be in place for 200 days until the final determination of the probe. However, imports from other developing nations, excluding China and Vietnam, will be exempt from the duty.
The preliminary findings report states that there has been a significant increase in imports into India, causing serious harm to the domestic industry. The report recommends a 12% safeguard duty to mitigate the impact on the domestic steel mills. The report also emphasizes the need for immediate application of provisional safeguard measures due to critical circumstances.
Imports from China and Vietnam individually make up more than 3 per cent of total shipments into India, while imports from other developing countries account for less than 3 per cent each. Therefore, imports from developing countries, other than China and Vietnam, will not be subject to the safeguard duty.
The products subject to the duty include various steel products such as hot rolled coils, cold rolled coils, metallic coated steel coils, and color coated coils. However, certain exclusions have been granted for specific products like stainless steel imports and various specialty products.
The DGTR has set price limits for the imported steel products above which no safeguard duty will be imposed. The objective of these measures is to protect the Indian domestic industry from the surge in imports.
The report mentions that the final probe is ongoing, and interested parties have been invited to provide comments on the preliminary findings. An oral hearing will be conducted before a final determination is made. The Authority will also verify the information submitted by the parties as necessary.
In conclusion, the safeguard duty on steel imports, including those from China and Vietnam, aims to address the challenges faced by the domestic steel industry. It is part of a larger effort to counter the impact of trade diversion and protect the interests of Indian steel producers.
