The decision to impose the duty was taken by the finance ministry after the Directorate General of Anti-Dumping and Allied Duties (DGAD) found that despite sufficient demand in India and capacities, the domestic industry has lost sales opportunities, which is a direct consequence of subsidised imports from China.
DGAD is an investigative arm of the commerce ministry.
Countervailing duty is country specific and is imposed to safeguard domestic industry against unfair trade subsidies provided by the local governments of the exporting nations.
The central government, after considering the final findings of the DGAD, "hereby imposes" the duty on these items, the revenue department said in its notification.
Jindal Stainless Ltd and Jindal Stainless (Hisar) Ltd on behalf of the domestic industry had filed the petition for initiation of anti-subsidy/countervailing duty investigation concerning imports of 'flat rolled products of stainless steel' from China.
The move assumes significance as the sector is facing challenges due to cheap steel imports.
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