DGAD recommends anti-dumping duty on steel pipes from China

13 December 2016

The Directorate General of Anti-Dumping and Allied Duties (DGAD) has recommended imposition of definitive anti-dumping duty on imports of steel tubes and pipes from China

Earlier this year in May, the government had imposed a provisional anti-dumping duty for six months on seamless tubes and steel pipes, among others, imported from China.

In March, DGAD had recommended to the revenue department to impose provisional levy on import of certain types of iron and steel pipes from China used in oil and gas exploration in a bid to protect the domestic industry from cheap imports.

In its latest notification, DGAD said: "The product under consideration has been exported to India from the subject country below its normal value, resulting in dumping. The domestic industry has suffered material injury due to dumping of the product under consideration from the subject country."

Its Final Findings report further said: "The material injury has been caused by the dumped imports from the subject country."

ISMT and Maharashtra Seamless had moved DGAD for imposition of the duty on "seamless tubes, pipes and hollow profiles of iron, alloy or non-alloy steel (other than cast iron and stainless steel), whether hot finished or cold drawn or cold rolled of an external diameter not exceeding 355.6 mm".

It also includes boiler pipes or line pipes used in the hydrocarbon industry and casing and tubing of a kind used in drilling for oil and gas exploration.

In the report, DGAD said it had initiated and conducted investigation into dumping, injury and causal links... and having established positive dumping margin as well as material injury to the domestic industry caused by such dumped imports, the Authority is of the view that imposition of definitive duty is required to offset dumping and injury.

"Therefore, the Authority recommends imposition of definitive anti-dumping duty on imports of subject goods from the subject country...," it added.

"Having regard to the lesser duty rule, the Authority recommends imposition of definitive anti-dumping duty (equal to the lesser of margin of dumping and margin of injury), so as to remove the injury to the domestic industry."