Govt plans to not impose anti-dumping duty on specific steel products

The government has decided not to inflict anti-dumping duty on specific steel products being imported from nations such as Japan, China, and Korea, since the finance ministry has not accepted the suggestions of the directorate general of trade remedies (DGTR). The commerce ministry's investigation arm DGTR had held an investigation against imports of Non-Alloy Steel or Cold Rolled or cold reduced flat steel products of iron or other Alloy Steel of all width and thickness - not clad, plated or coated and Hot Rolled flat products of alloy or non-alloy steel, following complaints listed by domestic manufacturers of the products. On both these types of steel, the directorate on September 14, 2021, had suggested the imposition of definitive anti-dumping duties. While DGTR suggests the duty, the Department of Revenue takes the final call to charge the duties. In separate office memorandums, the department has told the media that the central government, after considering the final findings of the designated authority (DGTR), has chosen not to accept the suggestions. The directorate had achieved in its findings that cold-rolled products are being dumped by firms from Japan, China, Korea and Ukraine; and hot-rolled goods are dumped from Japan, China, Russia, Korea, Brazil and Indonesia. India has a free trade agreement with Korea and Japan. In international trade parlance, dumping happens when a nation or a firm exports an item at a cost lower than the cost of that product in its domestic market. Dumping influences the cost of that product in the importing nation, hitting the margins and profits of manufacturing companies. As per the global trade standards, a nation is allowed to inflict tariffs on such dumped products to render a level-playing field to domestic producers. The duty is inflicted only after a thorough inquiry by a quasi-judicial body, like DGTR, in India. The imposition of anti-dumping duty is permitted under the World Trade Organisation (WTO) regime. The duty is strived at guaranteeing fair trading practices and forming a level-playing field for domestic manufacturers vis-a-vis foreign manufacturers and exporters. Image Source Also read: DGTR recommends anti-dumping duty on aluminium imports