New Delhi: The Indian government has recommended a 12 per cent provisional safeguard duty on certain steel products for 200 days to protect domestic manufacturers from a sharp rise in imports. This measure, proposed by the Directorate General of Trade Remedies (DGTR), is intended to prevent serious injury to the domestic industry due to an influx of steel imports.
A safeguard duty is a temporary tariff imposed to protect domestic industries from an unexpected surge in imports. “The Authority recommends the imposition of provisional safeguard duty at the rate of 12 per cent ad valorem for 200 days, pending final determination,” the DGTR said in an order issued on Tuesday.
Need for Immediate Action
The DGTR emphasized the urgent need to impose this duty, stating that any delay could cause irreversible damage to the steel sector. “There is a necessity for immediate application of provisional safeguard measures,” the order noted. The duty aims to provide relief to domestic steelmakers struggling with increasing competition from imported steel.
Rising Imports from Key Asian Markets
India has seen a significant rise in steel imports from China, South Korea, and Japan. According to DGTR findings, a major factor behind this increase is trade diversion caused by protective measures imposed by the United States in 2018.
To counter the impact, the European Union imposed safeguard duties in the same year, followed by countries such as South Africa, Turkey, Vietnam, and Malaysia, which also introduced import barriers. The DGTR highlighted the need for India to take adequate protective measures to mitigate trade diversions from these markets.
Final Determination Pending
The commerce department, under which the DGTR operates, has invited public comments on its findings within 30 days. Following this period, an oral hearing will be conducted before the final order is issued.
Products Exempted from the Duty
The safeguard duty will apply to select steel products; however, categories such as stainless steel, cold-rolled grain-oriented electrical steel, and Aluminium-coated steel have been excluded from this measure.
This temporary duty is expected to provide a much-needed cushion to India’s steel industry, allowing it to recover from the adverse impact of rising imports while a final decision is made.
