India starts safeguard probe into imports of certain flat steel products

 

India has initiated a probe into an alleged increase in imports of certain steel flat products into the country following a complaint from the Indian Steel Association, according to a government notification. The Directorate General of Trade Remedies (DGTR), under the commerce ministry, has started the investigation into imports of 'Non-Alloy and Alloy Steel Flat Products', used in various industries, including fabrication, pipe making, construction, capital goods, auto, tractors, bicycles, and electrical panels. According to the notification of the DGTR, the Indian Steel Association, on behalf of its members - ArcelorMittal Nippon Steel India, AMNS Khopoli, JSW Steel, JSW Steel Coated Products, Bhushan Power & Steel, Jindal Steel and Power, Steel Authority of India - has filed an application under the customs tariff Act, 1975. They have sought imposition of safeguard duty on imports of these products into India. The applicant has alleged that there is a “recent, sudden, sharp and significant” increase in the volume of imports, which has caused “significant” injury to the domestic industry in India,” it said. It has also alleged that the imports have taken place to cause serious injury to the industry.

 

“They have sought imposition of safeguard duties to protect the domestic industry engaged in the production of like articles or directly competitive products from such serious injury and threat thereof being caused by the imports,” it said. The product under consideration of the probe includes hot rolled (HR) coils, sheets and plates; HR plate mill plates; cold rolled (CR) coils and sheets; metallic coated steel coils and sheets; and colour coated coils and sheets. “On the basis of the duly substantiated application filed by the applicant, and having satisfied itself on the basis of evidence provided therein, the authority (DGTR) considers that there is sufficient prima facie evidence to justify the initiation of the investigation,” the DGTR notification said. As part of the investigation, the directorate would determine whether unforeseen developments have resulted in a sudden, sharp and significant increase in imports in recent periods, and whether such imports have caused serious injury or pose a threat of serious injury to the domestic industry. The applicant has requested for the imposition of provisional measures citing the existence of critical circumstances. It has asked to impose the duty for four years. For the purpose of the probe, it will consider the imports happened during October 2023 to September 2024. The authority will also examine data pertaining to 2021-24. Safeguard measures in the form of duty of quantitative restrictions are trade remedies available to the World Trade Organization member-countries. They are imposed to provide a level-playing field to domestic players in case of sudden and significant increase in imports of a product.