 "Safeguard duty on steel import extended")
The central government has extended the safeguard duty on some steel imports till March 2018, to protect domestic industry from cheaper supplies from China, amid a global glut. However, the duty would be reduced to 10 per cent in stages over the next two years.
In September last year, India had imposed a 20 per cent safeguard duty on ‘hot-rolled flat products of non-alloy and other alloy steel coils of a width of 600 mm or more’.
Major steel companies have also asked for an anti-dumping duty, as well as countervailing duty on various products in this category.
On March 15, the Directorate General of Safeguards said the duty should be extended for two and a half years as increased imports were threatening the domestic producers. In a notification dated Tuesday, the Central Board of Excise and Customs (CBEC) said the 20 per cent safeguard duty would be extended till September 13.
The duty would be reduced gradually — it would be 18 per cent for the period between September 14, 2016 to March 13, 2017; 15 per cent between March 14, 2017 and September 13, 2017; and 10 per cent between September 14, 2017 and March 13, 2018.
In January, the government had imposed a minimum import price (MIP) for six months on as many as 173 products to protect domestic players from cheap imports. If required, the government may extend it beyond six months. Moreover, the steel ministry is working with the finance ministry to issue a financial package within two months for revival of the sector. “The steel industry has been seeking long-term measures to contain a huge influx of imported steel. The final findings and extension of safeguard duty till March 2018 is a right step and we welcome this move,” said H Shivaramkrishnan, chief commercial officer, Essar Steel India.
According to the steel ministry, imports came down by 25 per cent in the first 11 months of the current financial year. In 2014-15, steel imports were of 9.32 million tonnes (mt). This year, the imports would be around seven mt.
Safeguard duty is allowed under World Trade Organization rules as a temporary measure, for a specified period, to protect a country’s domestic industry from cheaper import.
In September last year, India had imposed a 20 per cent safeguard duty on ‘hot-rolled flat products of non-alloy and other alloy steel coils of a width of 600 mm or more’.
Major steel companies have also asked for an anti-dumping duty, as well as countervailing duty on various products in this category.
On March 15, the Directorate General of Safeguards said the duty should be extended for two and a half years as increased imports were threatening the domestic producers. In a notification dated Tuesday, the Central Board of Excise and Customs (CBEC) said the 20 per cent safeguard duty would be extended till September 13.
The duty would be reduced gradually — it would be 18 per cent for the period between September 14, 2016 to March 13, 2017; 15 per cent between March 14, 2017 and September 13, 2017; and 10 per cent between September 14, 2017 and March 13, 2018.
In January, the government had imposed a minimum import price (MIP) for six months on as many as 173 products to protect domestic players from cheap imports. If required, the government may extend it beyond six months. Moreover, the steel ministry is working with the finance ministry to issue a financial package within two months for revival of the sector. “The steel industry has been seeking long-term measures to contain a huge influx of imported steel. The final findings and extension of safeguard duty till March 2018 is a right step and we welcome this move,” said H Shivaramkrishnan, chief commercial officer, Essar Steel India.
According to the steel ministry, imports came down by 25 per cent in the first 11 months of the current financial year. In 2014-15, steel imports were of 9.32 million tonnes (mt). This year, the imports would be around seven mt.
Safeguard duty is allowed under World Trade Organization rules as a temporary measure, for a specified period, to protect a country’s domestic industry from cheaper import.
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