Commerce Ministry: Recommendation to impose 12% safeguard duty on steel products for 200 days

The investigative arm of the Ministry of Commerce, DGTR, has recommended that a provisional safeguard duty be imposed at the level of 12 percent for a period of 200 days on certain steel products with the aim of protecting domestic steel producers against increasing imports.

In the last year, the Directorate General of Trade Remedies (DGTR), initiated an investigation against the sudden increase in imports of 'non-alloy and alloy steel flat products' that are being used in various sectors including fabrication, pipe production, building, capital goods, auto, tractor, bicycle, and electrical panels. The investigation had been initiated on the complaint lodged by the Indian Steel Association.

The Directorate has preliminarily, in its investigation, found that in the recent past, the imports of the said goods have increased suddenly, sharply, and considerably, which would cause significant injury to the domestic industry/producers.

The Directorate has said in a notification issued on March 18 that such serious circumstances exist where any delay in the application for provisional safeguard measures will cause such damage which will be difficult to repair. Provisional safeguard measures need to be implemented immediately.

The DGTR has said in a notification, "The authority recommends imposing provisional safeguard duty at the rate of 12 percent for 200 days till a final determination is made on the import of the product under consideration." The final decision to impose the duty will be taken by the Finance Ministry.