The Government of India has slapped special import duty on stainless steel from countries including China, USA and those in the European Union. The anti dumping duty for five years on cold-rolled flat products ranges from 5% to 57%. The duty will also be applicable to the same category of stainless steel from Taiwan, South Korea, Thailand and South Africa.
While the highest duty will be levied on Chinese imports, the lowest will be from Thailand. EU will be charged with 52.56%. The notification by the Central Board of Excise and Customs noted that a review with regard to the imports of cold rolled flat products of stainless steel was initiated in April 2014.
The government’s decision comes as a follow up to the growing discontent among domestic steel producers like Steel Authority of India, JSW Steel and Essar Steel etc. who have earlier complained about the losses they are incurring due to heavy dumping from countries like China. It is said that China has been continuing this across the globe, considering the huge surplus they’ve despite being the largest consumer too.
According to the Indian Stainless Steel Development Association, the total production of stainless steel in India stood at three million tonnes (mt) in 2013-14. Also as per the Commerce and Industry Ministry data, imports of iron and steel declined slightly to $6.9 billion in the first seven months of the current financial year ending next March from $7.1 billion a year ago.
The Directorate General of Safeguards, a branch of the finance ministry, said that it found prima facie evidence that increases in imports “have caused or are threatening to cause serious injury to the domestic producers”, as it investigates local industry complaint.