NEW DELHI: India has imposed a safeguard duty of 11–12% on select steel imports for a period of three years, as a measure to protect the domestic industry from the dumping of the low-priced overseas shipments, particularly from China, Nepal and Vietnam, notified finance ministry on Tuesday.
Under the order, there will be a levy of 12% in the first year, 11.5% in the second year, and 11% in the third year. However, the levy will not apply to
specialised steel products, including stainless steel, reflecting concerns over availability of niche grades used by downstream industries. Also, it will not be applicable to some developing countries. The steel ministry has repeatedly flagged risks posed by cheap and sub-standard imports, arguing that they distort the market and undermine domestic capacity.
In April, the government had imposed a temporary safeguard duty of 12% for 200 days as an interim measure, pending a final decision.
India’s action comes amid rising global trade tensions in the steel sector. Import tariffs imposed by US President Donald Trump particularly on Chinese steel exports, had prompted several countries, including South Korea and Vietnam, to impose anti-dumping duties earlier this year.
At the same time, the Centre has sought to balance protection with ease of doing business for users of imported steel. In November, the steel ministry eased norms for importing grades not covered under mandatory quality control orders (QCOs).
As part of this effort, it introduced the SARAL Steel Import Monitoring System (SARAL SIMS), a digital facility aimed at simplifying import registration, particularly for small enterprises.
The ministry has also said that steel imports under the advance authorisation route, meant for export-oriented production, will be fast-tracked to avoid supply disruptions. According to officials, measures on steel imports have been taken to support domestic manufacturing without hurting downstream industries dependent on specialised steel.