Commerce Ministry recommends safeguard duty on imports of certain steel items for 3 yrs

New Delhi: The Commerce Ministry’s arm, DGTR, has recommended final imposition of a safeguard duty on imports of certain flat steel products for three years to protect domestic manufacturers from sudden jump in the inbound shipments.

The duty was recommended by the directorate general of trade remedies (DGTR) in its final findings of a probe initiated on a complaint by the Indian Steel Association.

Based on the preliminary findings, the government in April has already imposed a provisional 12 per cent safeguard duty for 200 days.

Now in its final findings, the DGTR has concluded “that there is a recent, sudden, sharp and significant increase in imports of PUC (product under consideration) into India at the cumulative level as a result of unforeseen developments...and threaten to cause serious injury to the domestic industry/producers,” the DGTR has said in a notification.

It has recommended a 12 per cent duty in the first year, 11.5 per cent in the second, and 11 per cent in the third year.

The Indian Steel Association on behalf of its members including ArcelorMittal Nippon Steel India, JSW Steel, Jindal Steel and Power and Steel Authority of India filed an application seeking imposition of safeguard duty on imports of non-alloy and alloy steel flat products.

The applicant alleged that there was a sudden, sharp and significant increase in the volume of imports, which caused serious injury to the domestic industry in India.

The applicant also stated that imports took place in such increased quantities and under such circumstances that cause and threaten to cause serious injury to the domestic industry.

The DGTR said that taking into account the current serious injury to the domestic industry, and the imminent threat of injury due to the imports of subject goods, the fair selling price and, considering competing interest of all stakeholders, the authority recommends imposition of the duty on certain steel products.

Commenting on this, think GTRI said that India’s trade watchdog DGTR has confirmed safeguard duties on a wide range of steel imports, rejecting submissions from over 250 stakeholders, including major automakers and electronics firms.

It said that the probe, launched in December 2024, covered hot-rolled and cold-rolled products, metallic and colour-coated steel.

Chinese exports of these items rose to 110.7 million tonnes in 2024, up 25 per cent over 2023, much of it redirected to India, GTRI said.

“GTRI opposed the move, warning it (imposition of final safeguard duty) would raise input costs, hurt export competitiveness, and squeeze downstream users,” the think tank’s founder Ajay Srivastava said.

GTRI argued imports were predictable, not “sudden”; that domestic injury was overstated; and that duties would cripple auto, engineering, and construction sectors, he said.