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India imposes import tariff on steel. Here is why
The Union finance ministry on Tuesday imposed a three-year import tariff of between 11% and 12% on certain steel products, with the levy decreasing by 0.5% annually.
The safeguard duty will be imposed at 12% in the first year, followed by 11.5% in the second year, and then 11% in the third year, as stated in the finance ministry order.
The measure excludes imports from certain developing countries, though China, Vietnam, and Nepal will be subject to the levy. It also will not apply to speciality steel products such as stainless steel.
India has been facing a rise in cheap steel imports from China, which has raised concerns over dumping practices and put pressure on local steel manufacturers.
According to the order, the recent “sudden, sharp, and significant increase in imports of subject goods into India has caused and threatens to cause serious injury to the domestic industry/producers of subject goods”.
The order added that such a trend has necessitated the “imposition of provisional safeguard duty on imports of the subject goods into India”.
Notably, the decision spares imports from some developing nations. However, supplies from China, Vietnam and Nepal will be subject to the duty. The tariff will also not cover specialised steel items, including stainless steel.
The government had earlier imposed an interim safeguard duty of 12 per cent for a period of 200 days in April this year.
The finance ministry order said that the Centre, after reviewing the findings submitted by the Director General (Trade Remedies), has decided to levy a safeguard duty on steel products imported into India at the rates listed below:
Source: HindustanTimes
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