To counter Chinese dumping, double import duty: Steel Ministry to FinMin

Steel Secretary points to surge in China shipments, especially via Asean nations exploiting FTA

Steel Ministry is seeking a 100 per cent increase in basic customs duty on the import of the metal, raising it to 15 per cent, from the existing 7.5 per cent. Acknowledging that there is a surge in imports from China, to one-third (33 per cent approx) of steel imports, the Ministry has cited its own internal assessment, and recommended to the Finance Ministry that safeguards, Similar to those implemented by some other nations in the European Union, the USA and others, should be considered.

This is the first time that the Steel Ministry is acknowledging the surge in the import of finished steel from China, which the industry often refers to as dumping and claims is distorting domestic market dynamics.

The Ministry’s assessment notes that “all-new capacities being added to the region are mainland Chinese investments targeting export markets like India.”

In a letter dated September 24 to Revenue Secretary Sanjay Malhotra, Union Steel Secretary Sandeep Poundrik has urged “intervention” to address the “pressing issue” of the surge in imports and to explore the possibility of doubling basic customs duty (BCD) “to 15 per cent on steel products to safeguard the interests of the domestic steel industry”.

The 12–page letter (and internal assessment of the Ministry), a copy of which has been reviewed by businessline,also detailed out the Steel Ministry’s internal assessment on the issue of Chinese imports and rising shipments of steel “being diverted” from other ASEAN nations, particularly Vietnam, as the nation continues to “exploit” the zero customs duty benefit under the India – ASEAN Free Trade Agreement.