The exclusions extend to specialized products such as stainless steel, tin and electric steel, safeguard the niche from markets. | Photo credit: Giorgio Viera
In a bold movement to protect its steel industry, India has imposed a 12 percent tax, also called safeguarding, in the importation of flat non -alloy and alloy steel products, starting Monday, specifically aimed at shipments from China and Vietnam. The duty is in force for 200 days, unless it is modified or revoked.
The duty will include imports of products such as hot rolled coils, cold knee sheets, metallic coated steel and color coated coils.
The steel sector has been staggering from the influx of low -cost imports, with imports by 10 million tons. .
“… therefore imposes … when india is imported, a duty of provisional safeguarding at a rate of twelve percent AD VALEM ” The notification said. He mentions “serious injuries” to local manufacturers, with the potential for irreparable damage if the action is delayed as a key reference for implementation.
Welcome
Union’s Minister of Steel, HD Kumaraswamy, said the measure will protect national manufacturers and guarantee fair competition.
“We welcome 12 percent of safeguard taxes on the imported steel products. This will protect Indian manufacturers, guarantee fair competition and promote our national industry,” the minister wrote, recognizing the intervention of Prime Minister Narendra Modi in the matter.
‘Critical step’
According to TV Narendran, CEO and MD, Tata Steel, the imposition of safeguard taxes is a critical step to address the increase in imports at the unfair price to India. “Imports without control, from countries, with a significant excess of national manufacturing, employment and future investments. This decision will help restore fair competition, guarantee the long -term sustainability of the industry,” he said.
The DGTR in a probe had mentioned that “there is a recent, sudden, acute and significant increase in imports of goods subject to India”; While threatening to cause serious injuries to the national industry and producers. He also pointed out that there are critical circumstances, where any delay in the application of provisional safeguard measures would cause damage to and recommended 12 percent provisional service.
According to the hostile industries Bansal, MD or BMW, Quantum could have been a little more.
“You will see that the market does not move towards cheaper imports. The government will also have to ensure that the main inflation remains within the range of objectives,” he said.
“This important step will protect Indian manufacturers from unfair imports and will boost national production,” said Naveen Jindal, president of the Indian Steel Association.
Some exemptions
However, not all imports face the tax.
Steel products price higher than specific thresholds: $ 675 per ton at $ 964 per ton, depending on the category, they are exempt to ensure that high value imports are not affected.
The nations in development, expect China and Vietnam, escaped to duty, aligning with the commercial commitments of India.
The exclusions extend to specialized products such as stainless steel, tin and electric steel, safeguard the niche from markets. In total there are 22 specific exemptions of the product.
The exchange rate for tax calculations, linked to the Customs Law of 1962, adds another layer of complexity for imports that browse volatile markets.
Posted on April 21, 2025