India’s domestic steel industry is planning to approach the government afresh seeking a higher safeguard duty on steel imports than the 12 percent recommended by the Directorate General for Trade Remedies (DGTR), SteelOrbis has learned from several officials at private steel companies.
They said that domestic steel companies are holding internal consultations on the 12 percent ‘temporary tax’ recommended by the DGTR for 200 days on alloy and non-alloy flat steel products and a final petition to the ministry of commerce may be submitted through the Indian Steel Association (ISA), the representative body of all steel companies.
The formal petition is expected to be submitted within the next 10 days and well within the time frame of 30 days provided by the DGTR seeking comments from all industry stakeholders on the proposed temporary import safeguard levy.
The officials said that the domestic steel industry would approach the government for a higher levy of at least 18-25 percent, as the current rate of 12 percent is considered insufficient to check the inflow of ex-China material.
Further, the steel industry also maintains that 200 days of provisional duty is not enough and will move for a more permanent solution to the issue.
However, government sources have stated that the 12 percent duty is sufficient, and the number has been arrived at on the basis of a thorough investigation of the “scope of injury to the domestic industry”.
The rate also balances the interest of small and medium-scale steel consumers which had submitted before the DGTR that import restrictions would increase domestic steel prices and render products of value-added industries uncompetitive in domestic and international markets, government sources added.