India imposes anti-dumping duty on certain Chinese steel for five-year
NEW DELHI: India has extended the imposition of an anti-dumping duty on certain Chinese steel for another five years. According to a gazette notification by the Ministry of Finance, an anti-dumping duty of $613 per tonne has been levied on flat-base steel wheels imported from China. The anti-dumping duty on steel wheels was initially imposed in 2018, and now, the Directorate General of Trade Remedies (DGTR) has recommended it to continue.
“There is healthy competition in the Indian market and continuation of the duties would not deprive the domestic industry of any requirements. Simply put, anti-dumping duties are taxes imposed on imported goods in order to compensate for the difference between their export price and their normal value, if dumping causes injury to producers of competing products in the importing country,” reads the gazette notification.
The purpose of imposing an anti-dumping duty on Chinese steel is to reduce imports of steel from the country. According to government data, China was the second-largest steel exporter to India, following South Korea, with sales of 0.6 million metric tons from April to July 2023. It is 62% up compared to the same period in the previous year. Overall, India imported 2 million metric tons of finished steel during this period, which is the highest since 2020 and represents a 23% increase from the previous year. On September 4, India's steel secretary, Nagendra Nath Sinha, mentioned that he is monitoring the steel import situation after concerns were raised by the steel industry regarding potential dumping by Chinese sellers.
“The evidence of export price indicates that the Chinese exporters are exporting the goods to third countries at significantly dumped and injurious prices,” reads the notification.
The move was applauded by industry experts. Rajat Mohan, a senior partner at AMRG and Associates, stated that in order to address the issue of cheap imports, the Indian government has imposed a 5-year anti-dumping penalty on flat-base steel wheels imported from China.
“The application of anti-dumping duties demonstrates the Indian government's commitment to promoting fair competition and protecting indigenous industry,” said Mohan.
Anti-dumping duty occurs when a foreign company exports items to another country at prices that are lower than their home market pricing or lower than their manufacturing costs.