India probes dumping of steel products from China, EU

Anti-dumping authority responds to petition filed by Essar Steel and JSW Steel to probe dumping of certain flat steel products

Government has initiated a probe into dumping of certain flat steel products from China and the European Union with an aim to protect domestic industry from cheap imports.

Essar Steel India and JSW Steel Coated Products had filed a petition before the Directorate General of Anti-Dumping and Allied Duties (DGAD) for initiation of anti-dumping investigation and imposition of taxes on the alleged dumped imports of "colour coated/pre-painted flat products of alloy or non-alloy steel" originating in or exported from China and the EU.

The DGAD said it "prima facie finds sufficient evidence of dumping" of the products from these two regions.

"The authority hereby initiates an investigation into the alleged dumping causing consequent injury to the domestic industry...To determine the existence, degree and effect of dumping, and recommend the amount of anti-dumping duty, which if levied, would be adequate to remove the injury to the domestic industry," the DGAD said in a notification.

The period of investigation covers April-December 2015. However, the injury investigation period will also cover 2012-2014.

Besides, it said that the applicants have claimed that the products being produced by the domestic industry are similar to the items being dumped into India.

They have also requested for retrospective imposition of anti-dumping duty, it added.

The products under consideration are used in sectors such as construction, roofing, walling, paneling, automotive, white goods and appliances.

Countries start anti-dumping probes to determine whether their domestic industries have been hurt due to surge in below-cost imports. As a counter measure, they impose duties under the multilateral regime of WTO.

The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a- vis foreign producers and exporters.

India has already imposed anti-dumping duty on several products to tackle cheap imports from some countries, including China.

According to a WTO report, India, US and Brazil were the leading initiators of anti-dumping investigations in 2015.

With the domestic steel sector being in crisis, India is already investigating several dumping cases on different hot and cold rolled steel products.