The government's decision to impose countervailing duty on certain stainless steel products is expected to provide some relief to the domestic industry as imports from China will be subjected to 18.95 per cent levy on the landed value of such items, industry leaders said.
The government has imposed countervailing duty on certain stainless steel products which will go a long way in encouraging production of the metal within the country.
This much-awaited decision, taken after a year-long meticulous investigation conducted by the Directorate of Anti- Dumping & Allied Duties (DGAD), will provide some relief to the domestic industry and provide a level-playing field, Jindal Stainless said in a statement here.
Welcoming the government's decision, vice chairman - Jindal Stainless, Abhyuday Jindal, said, "This decision will provide much-needed safeguard from imports. Furthermore, we may expect better quality compliance as majority of the substandard stainless steel was being imported from China."
Imports from China will be subjected to 18.95 per cent countervailing duty on the landed value of stainless steel flat products, he said.
This duty will remain effective for a period of five years and would encompass products in both hot and cold rolled stages in any form. In its finding, the DGAD concluded that subsidised imports from China had increased significantly.
As a result, the domestic industry continues to suffer financial losses. It is evident from the DGAD investigation that the Chinese government is providing various forms of subsidies to support local stainless steel manufacturing units, the statement said.
Countervailing duty is country specific and is imposed to safeguard domestic industry against unfair trade subsidies provided by the local governments of the exporting country, the release said.
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