In a bid to guard the interest of domestic players from cheap in-bound shipments, the government has imposed anti-dumping duty on imports of some flat steel products from China and European Union (EU) for five years. The duty will be the difference between the landed value of the steel products and $822 per tonne.
The duty was imposed after the commerce ministry's directorate general of anti-dumping and allied duties (DGAD) recommended duty on such imports. In its findings, the DGAD had concluded that 'colour coated/pre-painted flat products of alloy or non-alloy steel' has been exported to India from these regions at below the normal value, due to which domestic industry has suffered material injury. This anti-dumping duty will be valid for a period of five years (unless revoked, superseded or amended earlier) from11th January and shall be payable in Indian currency. While DGAD recommends the duty to be levied, the finance ministry imposes it.
The government has already slapped anti-dumping duty on certain cold-rolled flat steel products from four nations, including China and South Korea. Countries initiate anti-dumping probes to determine if the domestic industry has been hurt by a surge in below-cost imports. As a counter-measure, they impose the duty. These duties are in compliance with the rules of global trade body World Trade Organisation (WTO). The duties also ensure fair trade by providing a level- playing field to the domestic industry. They are not a measure to restrict imports or cause an unjustified increase in the cost of products.