 "Steel wire rod coils; Image courtesy: RINL")
Although there is now a safeguard duty and minimum import prices on various steel products, five companies have asked the government to impose anti-dumping duty (ADDs) and countervailing duty on select products.
The five firms are JSW Steel, Steel Authority of India, Tata Steel, Jindal Steel & Power, and Essar Steel. They have asked the Directorate General of Anti-Dumping & Allied Duties for these two duties on particular steel products of one category — hot rolled flat products of non-alloy and other alloy steel, in coils of a width of 600 mm (millimetre) or more, said a government official.
In September, the government had imposed a 20 per cent safeguard duty on various products of this category only. Last week, the directorate-general said the duty should be extended for two and a half years, as increased imports threatened serious injury to domestic producers. The government is yet to take a decision on this.
Last month, the government had imposed a minimum import price (MIP) for six months on as many as 173 steel products to protect domestic companies from cheaper imports. And, the steel ministry is working with the finance ministry on a financial package within two months for the sector.
“The companies are looking for a long-term solution. Unlike safeguard duty or MIP, the anti-dumping duty or countervailing duty is country-specific. The companies’ focus is on China, which is the top steel exporter to India,” said the official.
The steel ministry said imports were down 25 per cent over a year ago in the first 11 months of 2015-16. In 2014-15, imports were 9.3 million tonnes (mt); in 2015-16, these would be seven mt.
Safeguard duty is allowed under World Trade Organization rules as a temporary measure.
According to the commerce ministry, the purpose of ADD is to rectify the trade-distortive effect when goods are exported by one country to another at a price lower than its normal value. In June last year, India imposed ADD of up to $316 a tonne on import of certain steel products from three countries, including China.
Countervailing duties are meant to level the playing field between domestic producers and foreign producers of the same product who can afford to sell it at a lower price because of the subsidy they receive from their government.
PROTECT US
What?
5 steel companies asking for anti-dumping duty (ADDs) and countervailing duty on select products
Who
The firms are JSW Steel, SAIL, Tata Steel, JSPL, and Essar Steel.
Specifics
They have asked for these two duties on particular steel products of one category — hot rolled flat products of non-alloy and other alloy steel, in coils of a width of 600 mm or more
In September
the government had imposed a 20 per cent safeguard duty on various steel products of this category only
Last month
the government had imposed a minimum import price (MIP) for six months on as many as 173 steel products.
Steel ministry
is working with finance ministry to issue a financial package within two months to revive steel sector
