Govt likely to impose 18.95% duty on steel products from China
The Dollar Business Bureau
In order to safeguard the domestic industry from cheap steel imports from China, the government is considering imposing 18.95% countervailing duty on the imports of some specific kind of flat steel products.
The Directorate General of Anti-Dumping and Allied Duties (DGAD), in its final findings, has found out that despite enough demand in the country and its capacities, the local industry has lost opportunities for sales, which is a direct result of subsidised shipments from China.
“The authority recommends imposition of definitive countervailing duty...so as to remove the injury to the domestic industry,” DGAD said in a notification.
It has recommended that the actual duty should have to be the differentiation between quantum of proposed countervailing duty (that is 18.95%) and the anti-dumping duty to be paid, if any.
There is a considerable difference between the international producers’ prices and the prices offered by local industry and, it added.
“Resultantly, domestic industry lost significant sales volumes,” DGAD said.
DGAD, an investigative arm of the Ministry of Commerce, recommends the duty, while the Ministry of Finance imposes it.
On behalf of the industry, Jindal Stainless (Hisar) Ltd and Jindal Stainless Ltd had filed the application with DGAD for initiation of the investigation regarding the imports from China of “flat rolled products of stainless steel”.
The Government’s move assumes importance as the domestic steel industry is facing challenges due to cheap imports.