With an aim to protect the domestic steel industry against cheap imports, the government is likely to impose countervailing duty of 18.95 per cent on imports of certain kind of flat steel products exported from China.
The Directorate General of Anti-Dumping and Allied Duties (DGAD) which is an investigative arm of the commerce ministry, in its final findings, said that the domestic industry has lost sales opportunities despite sufficient demand in the country and capacities, due to the subsidised imports from China. Jindal Stainless along with Jindal Stainless (Hisar) had filed the application for initiation of anti-subsidy/countervailing duty investigation.
DGAD further in order to remove the injury to the domestic industry has suggested that the duty should be the difference between the quantum of countervailing duty proposed (which is 18.95 per cent) and anti-dumping duty payable, if any pointing that there is a significant difference between the prices offered by the domestic industry and foreign producers.