Tariff protection for the Indian steel industry including 20 percent safeguard duty is temporary and could be “changed” even before expiry of the stipulated 200 days of validity based on the impact on downstream users, an official at India’s steel ministry said on Monday, October 19.
The official said that import tariffs like the safeguard duty are easy to impose based on immediate inputs received by the steel industry. However, it is difficult to monitor the impact on user industries and to maintain price competitiveness of the latter industries and so a comprehensive review of market conditions will be conducted based on which a decision will be taken on scrapping or changing the levy before expiry of 200 days, he said.
The steel ministry official went on to say that the submissions made by the Engineering Export Promotion Council (EEPC) that 20 percent safeguard duty will increase prices of engineering products using steel by 15 percent rendering them uncompetitive in global markets has been noted and will be taken into consideration in deciding the continuation of import protection.