Antidumping Duty Likely On Certain Steel Products Frm China, EU
25 October 2016
The government may impose anti-dumping duty on imports of certain flat steel products from China and European Union to protect the interest of domestic players from cheap in-bound shipments.
In its preliminary findings, the directorate general of anti-dumping and allied duties (DGAD) has recommended the duty on imports of "colour coated / pre-painted flat products of alloy or non-alloy steel".
Essar Steel India Ltd and JSW Steel Coated Products Ltd had jointly filed the application for initiation of the anti- dumping investigations.
DGAD has suggested that the duty should be the difference between the landed value of the steel products and USD 849 per tonne.
These steel products offers resistance to corrosion along with barrier protection. It is used in many applications and sectors including construction, roofing, walling, panelling, cladding and decking, automotive, white goods and appliances and furniture.
In its findings, DGAD concluded that the product has been exported to India at "below the normal value" due to which "the domestic industry has suffered material injury".
"The authority recommends imposition of provisional anti- dumping duty on the imports... so as to remove the injury to the domestic industry," DGAD said in a notification.
The authority is of the view that imposition of provisional anti-dumping duty is necessary to offset dumping and injury, it said.
Imports of these steel products have drastically increased to 213,311 tonnes during the period of investigation (July- December 2015) from 60,771 tonnes in 2012-13.
India has already slapped anti-dumping duty on certain cold-rolled flat steel products from four nations, including China and South Korea.
While DGAD recommends the duty to be levied, the finance ministry imposes it.
Countries initiate anti-dumping probes to determine if the domestic industry has been hurt by a surge in below-cost imports. As a counter-measure, they impose duties under the multilateral WTO regime.
Anti-dumping measures are taken to ensure fair trade and provide a level-playing field to the domestic industry. They are not a measure to restrict imports or cause an unjustified increase in cost of products.
India has initiated maximum anti-dumping cases against "below-cost" imports from China.
To protect the domestic steel industry, the government has also fixed minimum import price on certain goods.
Source : moneycontrol.com