DGTR Advises 12% Safeguard Duty on Steel to Counter Import Surge

The Directorate General of Trade Remedies recommended a 12% provisional safeguard duty on certain steel imports to protect domestic producers. This measure, meant for 200 days, comes in response to a surge in steel imports affecting industries like construction and automotive. The finance ministry will make the final decision.

The Directorate General of Trade Remedies (DGTR) has proposed a 12% provisional safeguard duty on specific steel imports for 200 days. This move aims to protect domestic producers from the threat posed by a recent increase in imports. The final decision lies with the finance ministry.

The investigation, initiated last December, highlighted a significant rise in imported 'Non-Alloy and Alloy Steel Flat Products', essential to many industries including construction and automotives. This influx of imports primarily stems from nations like China, Japan, and South Korea, where an oversupply of capacity exists due to waning domestic demand.

While large domestic steel manufacturers support this duty, arguing it levels the playing field, the user industry and some MSME exporters express concerns. They fear heightened costs will reduce competitiveness, particularly affecting outbound shipments from the engineering sector.

(With inputs from agencies.)