Govt may impose countervailing duty on certain steel products

The government may impose countervailing duty of 18.95 per cent on imports of certain kind of flat steel products from China to guard domestic players from cheap imports.
In its final findings, the Directorate General of Anti- Dumping and Allied Duties (DGAD) has concluded that despite sufficient demand in India and capacities, the domestic industry has lost sales opportunities, "which is a direct consequence of subsidised imports" from China.
DGAD is an investigative arm of the commerce ministry.
It has recommended that the actual duty should be the difference between the quantum of countervailing duty proposed (which is 18.95 per cent) and anti-dumping duty payable, if any.

"The authority recommends imposition of definitive countervailing duty...So as to remove the injury to the domestic industry," the DGAD has said in a notification.
While DGAD recommends the duty, finance ministry imposes it.

It added that there is a significant difference between the prices offered by the domestic industry and foreign producers.
"Resultantly, domestic industry lost significant sales volumes," it said.
Jindal Stainless Ltd and Jindal Stainless (Hisar) Ltd on behalf of the domestic industry had filed the petition for for initiation of anti-subsidy/countervailing duty investigation concerning imports of "flat rolled products of stainless steel" from China.
The move assumes significance as the sector is facing challenges due to cheap steel imports.