Extension of Safeguard Duty On Steel To Help Industry: ISA

New Delhi: The government move to extend the Safeguard Duty of up to 20 per cent on some steel products for two years against cheap imports will aid the industry's recovery, Indian Steel Association said on Thursday.

The Directorate General of Safeguards (DGS) had on Wednesday recommended continuing of restrictive duties on some steel products till March 31, 2018.

Over the last one year, the ISA has consistently apprised all the ministries concerned on the deep negative impacts that large volumes imports of steel products at predatory prices bring on to the viability of the steel industry in India, it said in a statement.

Welcoming the step, ISA Secretary General Sanak Mishra said the timely action of imposition of safeguard duties will aid in the faster recovery of domestic steel producers and would work towards contributing to the success of the 'Make in India'.

Essar Steel Chief Commercial Officer Shivramkrishnan said final findings and recommendations by the DGS validates the concern raised by the steel industry with regard to surge in import volume. This recommendation should enable a stable and fair playing field to the domestic industry.

DGS, under the finance ministry, recommended 20 per cent ad valorem safeguard duty in the first year from September 14, 2015 to September 13, 2016 on hot-rolled flat products of non-alloy and other alloy steel in coils of 600 mm width or more.

It suggested an 18 per cent duty in first half of second year and 15 per cent in the second half of that year. For the first six months of the the third year from September 14, 2017 to March 13, 2018, it recommended 10 per cent anti-dumping duty.

The increased imports of 'hot-rolled flat products of non-alloy and other alloy steel in coils of a width of 600 mm or more' into India "have caused serious injury and are threatening to cause serious injuries to domestic producers".

"It has been observed that the position of the domestic industry further deteriorated on account of production, sales and market share," it said, adding that "further protection" to the domestic industry is required to be extended.

It will be "in public interest" to impose safeguard duty on such imports for a period of two and half years.

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