India Places 12% Safeguard Levy on Certain Steel Products, Amid Dumping Concerns
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Summary: India imposed a 12% duty on select steel imports to shield local producers from cheap overseas supplies.
India has announced a 12% duty on specific steel products to protect its domestic market from a rise in low-cost imports, mainly from China, South Korea, and Japan. The duty will remain in effect for 200 days from the date of publication in the Official Gazette.
The Directorate General of Trade Remedies (DGTR) noticed a sudden and sharp increase in steel imports, which can majorly impact the domestic sector. The Ministry of Finance responded by enforcing the safeguard duty through a notification.
Certain specialized steel products are exempt from this duty, including Cold Rolled Grain Oriented Electrical Steel (CRGO), tinplate, stainless steel, rubber-coated steel, brass-coated steel, and aluminium-coated steel.
Additionally, the duty does not apply to product categories priced above the import price on a Cost, Insurance, and Freight (CIF) basis—set at $675 per metric tonne for hot rolled coils, sheets, and plates, and $964 per metric tonne for colour-coated coils and sheets, whether or not profiled.
The Indian Steel Association (ISA) has earlier supported a 25% tariff on steel products, indicating that between January and July 2024, Chinese steel imports increased by 80%. After the US imposed a 25% levy under Section 232 of its Trade Expansion Act, 1962, several countries have taken various trade remedy actions against steel imports, the ISA clarified.
India's move is consistent with global efforts to protect domestic companies from the damaging effects of dumping and maintain fair competition in the steel industry.
