Centre Imposes 12% Temporary Tariff On Certain Steel Imports, Duty Valid For 200 Days
The Government has imposed a temporary 12% safeguard duty on the import of certain non-alloy and alloy steel flat products. The safeguard duty covers products such as cold-rolled coils sheets; metallic coated steel coils and sheets; hot-rolled coils and sheets; hot rolled plate mill plates; and colour-coated coils and sheets, whether or not profiled. The duty will not be imposed on...
The Government has imposed a temporary 12% safeguard duty on the import of certain non-alloy and alloy steel flat products. The safeguard duty covers products such as cold-rolled coils sheets; metallic coated steel coils and sheets; hot-rolled coils and sheets; hot rolled plate mill plates; and colour-coated coils and sheets, whether or not profiled.
The duty will not be imposed on the product categories when imported into India at or above the specified import price on cost insurance freight basis.
As per the Ministry of Finance, the safeguard duty shall be in effect for 200 days (unless revoked, superseded or amended earlier) starting from 21st April, 2025.
The duty aims to curb the adverse impact of rising imports on domestic steel producers. This will provide immediate relief to the Indian manufacturers struggling with market distortions caused by a spike in foreign steel inflows.
H.D. Kumaraswamy, Union Minister for Steel and Heavy Industries, stated that, “This move will provide critical relief to domestic producers, especially small and medium-scale enterprises, who have faced immense pressure from rising imports. The safeguard duty will help restore market stability and reinforce the confidence of the domestic industry.”
“The safeguard duty is a timely and necessary step to protect domestic steel manufacturers from the adverse impact of import surges and to ensure fair competition in the market” added H.D. Kumaraswamy.
In December, 2024, the Directorate General of Trade Remedies (DGTR) started investigation into sudden surge in imports of 'Non-Alloy and Alloy Steel Flat Products'.
The investigation was conducted after a complaint was filed by Indian Steel Association on behalf of its members and Steel Authority of India Limited. Last month, the DGTR recommended to impose 12% tariff on some steel products for 200 days.
It is expected that the safeguard duty mechanism will be closely monitored by the DGTR (Directorate General of Trade Remedies) to assess the effectiveness of the measure.