NEW DELHI: The government on Monday imposed a provisional safeguard duty of 12% on imports of key steel products, including hot rolled coils (HRC), in view of a surge in shipments of the alloy varieties from several countries, especially China.
The extra imposts, which are subject to riders and certain waivers, will remain for a period of 200 days, and will be reviewed closer to their expiry. The decision follows a probe by the Directorate General of Trade Remedies (DGTR). The domestic steel makers have complained of below-cost imports from countries like China, South Korea and Vietnam. India remained a net importer of steel for the second year in a row in FY25, when finished steel exports stood at 4.9 million tonne and imports 9.5 MT.
The government move comes at a time all countries, including India, are grappling with a 25% additional tariff slapped by the US on steel and aluminium. While India challenged additional duties imposed by the US at the World Trade Organization, it has opened a bilateral channel to resolve the issue, with talks likely with the US this week.
The notification imposing the safeguard duty by India was issued by the Central Board of Indirect Taxes and Customs. Besides HRC, the products covered by the duty are sheets and plates; hot rolled plate mill plates; cold rolled coils and sheets; metallic coated steel coils and sheets; and colour coated coils and sheets.
However, if the import price of these five products is above the price mentioned in the notification then no safeguard duty will be imposed. If the import price of HRC, sheets and plates is $ 675 per metric tonne and of colour coated coils and sheets is $ 964 per tonne or more, no safeguard duty will be payable.
Similar threshold has been imposed on the other three products. Imports of these products from developing countries, barring China and Vietnam, will also be exempt from safeguard duties.
The safeguard duty came after a probe by DGTR on a complaint by the Indian Steel Alliance on behalf of its members including ArcelorMittal Nippon Steel, JSW Steel, Bhushan Power and Steel and Steel Authority of India.
The probe started in December and preliminary findings and recommendation of duty came in March.
These products covered by safeguard duties are used in general engineering and fabrication, pipe manufacturing, construction, capital goods, automotive industry, bicycles, appliances, furniture, electrical panels, packaging, drums, renewable energy and barrels.
Speciality steels like tinplate, stainless steel and steels used in electronics and some others have been exempted from extra duties. The exemptions will address the concerns of user industry which were expecting an increase in input costs after the duties.
The duties are provisional as the DGTR investigation continues and once it is completed final view will be taken. Apart from addressing the long-pending issue of dumping, the extra duties will also check anticipated surge in imports following imposition of 25% duties on steel and aluminium imports imposed by the US.
Source: The Financial Express
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