Government recommends for 12% Safeguard Duty on steel products for 200 Days
According to preliminary findings of the directorate in its investigation, imports of these goods into India show a recent, rapid, sharp and notable rise that could seriously damage the home industry/producers.
DGTR, under Ministry of Commerce has advised implementation of a 12% temporary safeguard tax for 200 days on some steel products with an intent to defend home players against rise in imports. The Directorate General of Trade Remedies (DGTR) began looking into the unexpected rise in imports of "Non-Alloy and Alloy Steel Flat Products," used in manufacturing, pipe making, construction, capital goods, auto, tractor, bicycle, and electrical panelling last year in December.
The investigations initiated amid the Indian Steel Association filed a complaint. According to preliminary findings of the directorate in its investigation, imports of these goods into India show a recent, rapid, sharp and notable rise that could seriously damage the home industry/producers.
According to the directorate in a notification dated March 18, there are crucial conditions when any delay in application for temporary safety measures may result in harm difficult to recover. There is a necessity for immediate application of provisional Safeguard measures.
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"The authority recommends imposition of temporary Safeguard Duty at the rate of 12 per percent ad valorem for 200 days pending final determination on imports of the product under consideration," the DGTR said in a notice. This proposal to impose the obligation will come from the finance minister. Trade remedies accessible to World Trade Organisation members are safeguarding actions expressed as duty or quantitative limits.
They are enforced to give domestic players a level-playing field in case of an unexpected and notable rise in imports of a good. Although some large local steel companies support the duty's enforcement, the user sector is adamantly against it since it would drive raw material prices, therefore compromising their competitiveness. Domestic steel players have expressed worries about growing imports of steel from China and other countries.
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