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Overseas stainless steel exporters, local importers misusing ASEAN-India FTA: ISSDA

Press Trust of India  |  New Delhi 

Industry body ISSDA Tuesday raised concerns that exporters of in several countries are colluding with some Indian importers to misuse the provisions of the ASEAN-free-trade agreement.

Indian Development Association (ISSDA) also said the imports of from have jumped over eight-fold in one year.

"Exporters of stainless steel in several countries are colluding with some Indian importers to misuse the provisions of Indian-ASEAN FTA rules," the association said.

Exporters from ASEAN countries such as Indonesia, Malaysia, Singapore, Thailand, and are trying to avail preferential tariff under the free-trade agreement (FTA), it added.

Import of stainless steel from into has grown to massive proportions from nearly 8,000 tonne in 2017-18 to 67,000 tonne in 2018-19, the body said.

"Chinese investments in are backed by subsidies provided to expand in overseas markets. They are also subsidised generously by the to attract more investment," K K Pahuja, president, ISSDA, said in the statement.

Through Indonesia, the Chinese producers are indulging in rampant misuse of India-ASEAN FTA, ISSDA said adding that cold rolled material from is exported to Indonesia for minor value additions like slitting into smaller widths, after which, the same consignment is exported to

"In another method to evade the duties, Indonesia imports hot rolled from and then converts the same consignment into These cold rolled materials are then exported to India claiming preferential duty of zero per cent," he added.

The government must initiate appropriate actions against erring importers who are not only causing loss to the exchequer but also hurting the domestic industry, said.

ISSDA has requested the government to impose anti-dumping duty/countervailing duty on imports of from Indonesia, to counter Chinese imports, which are now being routed through the ASEAN-India FTA route, he said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, February 05 2019. 19:30 IST