Commerce Ministry recommends safeguard duty on flat steel imports for three years: All you need to know

Mint

10 hours ago

The Commerce Ministry's Directorate General of Trade Remedies (DGTR) arm, has recommended imposition of safeguard duties for three years on imports of some flat steel products, in order to protect domestic manufacturers, PTI reported on August 17.
This comes after a probe based on a complaint by the Indian Steel Association (ISA), amid concerns over the sudden increase in inbound shipment of such products and consequent impact on domestic players, it added.
The DGTR said that taking into account the current serious injury to the domestic industry, and the imminent threat of injury due to the imports of subject goods, the fair selling price and, considering competing interest of all stakeholders, the authority recommends imposition of the duty on certain steel products.
Notably, in April, the government had already imposed a 200-day provisional 12 per cent safeguard duty, based on the preliminary findings of the DGTR probe, the report noted.
Now, in the notification of its final report, the DGTR concluded there 'is a recent, sudden, sharp and significant increase in imports' of such products that could 'at the cumulative level as a result of unforeseen developments ... and threaten to cause serious injury to the domestic industry'. A 12 per cent safeguard duty in the first year,
A 11.5 per cent safeguard duty in the second year, and
A 11 per cent safeguard duty in the third year. The ISA on behalf of its members including ArcelorMittal, Nippon Steel India, JSW Steel, Jindal Steel and Power and Steel Authority of India filed an application seeking imposition of safeguard duty on imports of non-alloy and alloy steel flat products.
The applicant alleged that there was a sudden, sharp and significant increase in the volume of imports, which caused serious injury to the domestic industry in India, as per the report.
The applicant also stated that imports took place in such increased quantities and under such circumstances that cause and threaten to cause serious injury to the domestic industry.
Meanwhile, industry think tank, GTRI said that the safeguard duties on a wide range of steel imports, were imposed after rejecting submissions from over 250 stakeholders, including major automakers and electronics firms.
It said that the probe, launched in December 2024, covered hot-rolled and cold-rolled products, metallic and colour-coated steel. Chinese exports of these items rose to 110.7 million tonnes in 2024, up 25 per cent over 2023, much of it redirected to India, GTRI said.
'GTRI opposed the move, warning it (imposition of final safeguard duty) would raise input costs, hurt export competitiveness, and squeeze downstream users,' the think tank's founder Ajay Srivastava said.
GTRI argued imports were predictable, not 'sudden'; that domestic injury was overstated; and that duties would cripple auto, engineering, and construction sectors, he said.