Extension of safeguard duty on steel products to aid domestic industry

Domestic steel industry has been making consistent efforts apprising the government to protect domestic industry from increasing imports The Dollar Business Bureau
Extension of safeguard duty on steel products to aid domestic industry Safeguard investigation on ‘hot-rolled flat products of non-alloy and other alloy steel in coils of a width of 600 mm or more” turns a concern for India’s global steel partners
    Owing to domestic concerns, the Directorate General of Safeguards(DGS) recommended on Wednesday the decision to continue the safeguard duties earmarked for some steel products for two more years, i.e., till March 31, 2018. This decision to continue safeguards has been achieved due to the consistent efforts of the domestic steel industry bodies. These bodies have been pitching for duties on steel imports as a measure to boost and protect the domestic steel industry. For over a year, the Indian Steel Association (ISA) has repeatedly informed all the ministries to address the negative impact that steel products imported in large volumes at acquisitive prices bring to the Indian steel industry. In this regard, the apex steel industry body Indian Steel Association (ISA) has reportedly welcomed the government’s move, which termed it as a ‘timely action’. ISA has reportedly expressed hope that the move will help domestic producers to recover fast and also encourage them to up their contribution to 'Make in India' mission. It is noteworthy that DGS had approved a 20% safeguard duty from September 14, 2015 to September 13, 2016 on the import of ‘hot-rolled flat products of non-alloy and other alloy steel in coils of a width of 600 mm or more” into India. The increased imports of the above products earlier were of great concern and harmful to the revenues of domestic producers. "It has been observed that the position of the domestic industry further deteriorated on account of production, sales and market share," DGS said, pitching on the need to extend further protection to domestic steel industry. Meanwhile, in its final findings released on Tuesday, the DGS has also notified concerns raised by India’s global steel partners, over safeguard investigation on imports of above said products. Raising concern that ‘substantial increase of the export of commodity from the Russian Federation to India did not happen,’ the Ministry of Industry and Trade of the Russian Federation has said that the ‘export of commodity from Russia to India is not the reason of Indian producers’ damage’. “Since there is no import of the Product Under Consideration (PUC) under the classification of “not in coil and/or plate” originating from Indonesia into India, imports from Indonesia cannot cause injury to India’s domestic industry,” said Embassy of the Republic of Indonesia. Republic of Korea, Saudi Arabia, European Union, Republic of Turkey, were among other India’s global steel partners those have raised concern over safeguard investigation on import of said products.  

March 18, 2016 | 06:40pm IST

 
The Dollar Business Bureau - Mar 18, 2016 01:03 IST
 
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