A three-year import duty on some steel products from China has been imposed by India. A duty of 11-12 per cent on certain steel products will be levied by India. The Ministry of Finance has issued an order in this respect. This is being seen as a move to thwart the import of less-priced steel from China, Hindustan Times reported.
The Government of India has decided that the tariff will be set at 12 per cent in the first year, according to the order published in the gazette. It will be subsequently reduced to 11.5 per cent in the second year. The tariff will be further lowered to 11 per cent in the third year.
The reason behind India's move
India has seen a surge in low-cost steel imports from China, triggering concerns about dumping and increasing pressure on domestic steel producers.
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The "recent, sudden, sharp, and significant increase in imports of subject goods into India has caused and threatens to cause serious injury to the domestic industry/producers of subject goods", the order published in the government gazette read. It added that the situation has warranted the "imposition of provisional safeguard duty on imports of the subject goods into India."
However, the Government of India has decided not to impose such taxes on imports from a few developing countries. Imports from China, Vietnam, and Nepal will have to pay this duty. The new regulation will not apply to specialised steel items, including stainless steel.
The government introduced a temporary safeguard duty of 12 per cent, to be in force for 200 days in April.
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The time phases and respective duties
The duty will be applied in phases: 12 per cent ad valorem on imports between April 21, 2025, and April 20, 2026; 11.5 per cent between April 21, 2026, and April 20, 2027; and 11 per cent between April 21, 2027, and April 20, 2028.
