Commerce Ministry: Recommendation to impose a 12% security charge for 200 days on steel products
New Delhi| DGTR, the investigative arm of the Ministry of Commerce, has recommended the imposition of a provisional safeguard duty of 12 per cent for 200 days on certain steel products with a view to protecting domestic steel producers from an increase in imports.
In December last year, the Directorate General of Trade Remedies (DGTR) had banned the import of ‘non-alloy and alloy steel flat products’ used in various industries including fabrication, pipe manufacturing, construction, capital goods, auto, tractor, bicycle and electrical panels. A sudden increase in was initiated investigation. This investigation was conducted after the complaint of Indian Steel Association.
The Directorate in its investigation has preliminary found that there has been a recent sudden, rapid and significant increase in imports of these products into India, which is at risk of serious injury to the domestic industry/producers.
The Directorate has stated in the notification issued on 18 March that serious circumstances exist where any delay in the application for provisional safeguard measures would cause damage which would be difficult to repair. Provisional safeguard measures need to be implemented as a matter of urgency.
“The Authority recommends the imposition of a provisional safeguard duty at the rate of 12 per cent for 200 days until a final determination is made on imports of the product in question”, the DGTR said in a notification The final decision on imposing the fee will be taken by the Finance Ministry.
