Government's imposition of countervailing duty on certain stainless steel products from China will provide safeguard to domestic players from subsidised imports as well as a level playing field, Jindal Stainless said today.
The company said it expects better quality compliance as majority of the substandard stainless steel was being imported from China.
"The much awaited decision, taken by the government after a year-long meticulous investigation conducted by Directorate of Anti-Dumping & Allied Duties (DGAD), will provide some relief to the domestic industry and provide a level-playing field," Jindal Stainless Vice Chairman Abhyuday Jindal said in a statement.
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.
DGAD is an investigative arm of the commerce ministry. While DGAD recommends the duty, finance ministry imposes it.
The actual duty imposed by the government will be the difference between the quantum of countervailing duty proposed (which is 18.95 per cent) and anti-dumping duty payable, if any.
Jindal said the duty would encompass products in both hot and cold rolled stages in any form.
In its findings, DGAD had concluded that subsidised imports from China had increased significantly and as a result, domestic industry continues to suffer financial losses.
"It is evident from DGAD investigation, that Chinese government is providing various forms of subsidies to support local stainless steel manufacturing units," he added.
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.
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