Safeguard duty of 25% proposed on flat steel products

The government is considering levying a safeguard duty of 25 per cent on key steel products imported from countries like China and Japan to protect the domestic industry against damages from cheap arrivals. The Directorate General of Safeguards has recommended to the commerce ministry for imposition of the duty on imports of flat steel items like hot-rolled coils, sheets and strips shipped below $600 per tonne to India, an official said.

The Directorate’s recommendation comes on the basis of its initial findings that increased imports has caused “serious injury” to the domestic steel industry, he added.

Early this month, the government had initiated safeguard investigations for flat steel products, which are mainly used by sectors like automobile and infrastructure. Two leading private producers — Essar Steel and Ispat Industries — had filed a petition for imposing safeguard duty and the same was supported by SAIL and JSW Steel.