India’s Directorate General of Trade Remedies (DGTR) has suggested a provisional safeguard duty of 12 per cent on steel imports, including those from China and Vietnam, in order to protect the domestic industry from serious injury and potential threats. The duty will be imposed for 200 days until the final determination of the probe is made. However, imports from other developing nations, excluding China and Vietnam, will be exempt from this duty.
The preliminary findings report highlights a significant increase in steel imports into India, posing a threat to the domestic industry. In response, the DGTR recommends a 12% safeguard duty to address these concerns.
The report also mentions the existence of critical circumstances that require immediate application of provisional safeguard measures to prevent irreversible damage. Imports from China and Vietnam individually make up more than 3 per cent of total shipments into India, while imports from other developing countries are below 3 per cent each.
Products to be subjected to the safeguard duty include various steel products such as hot rolled coils, cold rolled coils, metallic coated steel coils, and color coated coils. Certain exclusions have been granted for specific stainless steel products to cater to industry requirements.
The DGTR has also established price limits for different steel products, above which the safeguard duty will not apply. This measure aims to protect the Indian domestic industry from a surge in imports.
Trade diversion from the United States has contributed to the increase in steel imports, prompting countries like the EU, Canada, and the UK to impose safeguard duties. India’s move to impose safeguard duties is seen as a necessary step to address trade diversion and protect the domestic steel industry.
The final probe is ongoing, and the DGTR invites comments from interested parties before making a final determination. An oral hearing will be conducted, and further verification of information submitted will be done as needed.
In conclusion, the imposition of safeguard duties on steel imports, particularly from China and Vietnam, is intended to safeguard the Indian steel industry from harmful effects of increased imports and trade diversion. The final decision will take into account all relevant factors to ensure a fair and balanced approach to trade protection.
