DGTR recommends continued duties on stainless steel pipes from China, Vietnam

The Directorate General of Trade Remedies (DGTR), under the commerce ministry's investigation arm, has recommended extending countervailing or anti-subsidy duties on welded stainless steel pipes and tubes from China and Vietnam. This recommendation aims to protect domestic players from potential harm, as the DGTR has found that discontinuing these duties could lead to financial losses for the local industry.

The DGTR's notification states that it is necessary to maintain the current duties due to the risk of injury to domestic producers. The proposed duty on these imports could be as high as 29.88%. The final decision to impose this duty rests with the finance ministry.

The investigation revealed that Chinese producers have excess capacity for these products, and with reduced demand in their own country, they might redirect these goods to India if the duties are lifted. This scenario could adversely affect local manufacturers.

Domestic industry stakeholders initiated a sunset review in July 2023 to reconsider the anti-subsidy duties imposed since September 2019 on imports of welded stainless steel tubes and pipes from China and Vietnam. Such duties are typically imposed to counteract the impact of subsidised exports, which can undercut prices and profit margins of local manufacturers.

Under international trade rules, countries are permitted to impose countervailing or anti-subsidy duties to ensure fair competition for their domestic industries.