Union Govt imposes safeguard duty on certain steel imports
The Union Government has imposed safeguard duty on import of certain steel products. This is for to save domestic manufacturers from cheap in bound shipmets.
Revenue Department was imposed this safeguard duty on steel products like hot rolled flat sheets and plates of alloy (excluding hot rolled flat products in coil form) or non-alloy steel.
The effective duty rate will be counted after deducting value of products and the anti-dumping duty payable when import price is less than $504 per tonne.
The duty arrived at would be ten percent in the 1st year and will gradually reduce to 8% by 2018 and 6% by 2019.
The Director General (Safeguard), in his final findings in Aug 2016 had found that increased imports of these steel products into India have caused serious injury to the domestic producers.
Thereby it was necessary to impose safeguard duty on imports of steel products into India.
Earlier, India had imposed anti-dumping duty on certain cold-rolled flat steel products from four nations including China and South Korea.
What is Safeguard Duty? The safeguard duty is tariff barrier imposed by government on the commodities to ensure that imports in excessive quantities do not harm the domestic industry.
It is temporary measure undertaken by government in defence of the domestic industry which is harmed or has potential threat getting hared due to sudden cheap surge in imports.