News Brief
Steel Ministry Seeks Doubling Of Customs Duty Amid Concerns Over Surging Chinese Imports — What You Need To Know
Steel Industry (Representative image)
The Ministry of Steel is pushing for a doubling of the basic customs duty on steel imports, suggesting an increase from the current rate of 7.5 per cent to 15 per cent.
The Ministry has reportedly acknowledged a substantial rise in steel imports from China, which now makes up around one-third (around 33 per cent) of all steel imports, according to its internal assessment.
The Steel Ministry has 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, The Hindu Businessline reported.
According to the report, this is the first time that the Steel Ministry is acknowledging the surge in the import of finished steel from China.
The steel industry commonly labels this practice as dumping, arguing that it disrupts the balance of the domestic market.
Union Steel Secretary Sandeep Poundrik, in a letter dated 24 September to Revenue Secretary Sanjay Malhotra, has called for “intervention” to address the “pressing issue” of the surge in imports.
Poundrik also suggested considering the option of doubling the basic customs duty to 15 per cent on steel products as a measure to protect the interests of the domestic steel sector.
The 12-page letter reportedly also detailed out the Steel Ministry’s internal assessment on the issue of Chinese imports.
The letter noted the growing diversion of steel shipments from ASEAN countries, especially Vietnam, which has been exploiting the zero customs duty benefit under the India-ASEAN Free Trade Agreement.
