The government can impose 12 % safeguard duty on the import of select steel products for the protection of the indigenous industry. The Directorate General of Treatment (DGTR) has done this fee on these products for 200 days. This step can be taken for the purpose of safety of the domestic industry in view of the rise in steel imports in recent times. The recommendation will give final approval to the Revenue Department of the Finance Ministry. This remedy is being done when the US 25 % duty on steel and aluminum imports is being effective from March 12. This is expected to increase steel imports and increase in the country.
The country levies a temporary duty in a obstacle to save the domestic industry when the import of a product increases rapidly.
The DGTR report states that it is important to implement this remedy under the current circumstances and any kind of delay in imposing fee will cause damage, which will be difficult to compensate. Investigation of the Department of Trade has revealed that the implementation of protective measures by the US in early 2018 has increased significantly in steel imports from countries such as China, South Korea, Vietnam and Japan.
The report said, “Many countries have imposed import duty to combat growing imports in its countries with the US step and any protective measures taken by India will be of sufficient level to prevent additional imports.” However, micro, small and medium undertakings (MSMEs) and the user industry are concerned that imposing import restrictions in the form of safeguard duty will make raw materials expensive and will increase its total cost.
EEPC India chairman Pankaj Chadha said that there is a need to take additional measures to protect MSME and user industries due to potential increase in prices of steel products and obstruction of supply. He suggested that provision should be made to buy steel at export priority price for MSME units so that they can compete globally.
Chadha has suggested implementation of the duty rate quota system in which imports are allowed at low duty to the prescribed extent and safigard duty should be imposed on more imports than the said quota. Industry’s opinion is divided on safeguard fee. Big companies have welcomed the government’s decision, while the user industry is worried about increasing prices. Tata Steel Chief Officer and Managing Director TV Narendran said, “We welcome the move and appreciate the government for the help of the industry.”
Vice President in Iqra, Ritavrat Ghosh said that steel producing companies like JSW Steel, Tata Steel, Cell and ArcelorMittal Nippon Steel India will directly benefit from the proposed safeguard fee.
(Along with Ishita Ayan Dutt from Kolkata)
First Published – March 19, 2025 | 11:14 pm IST
