India: Commerce ministry initiates safeguard investigation into steel imports

• Duty to cover countries with over 3% share in imports
  
  
• Industry awaits 'provisional duty' on priority basis
  
  
• Period of investigation to cover 1 Oct'23-30 Sep'24
  
  

The Department of Trade Remedies (DGTR) under the Ministry of Commerce & Industry, Government of India, issued a notification dated 19 December, 2024 for "initiation of a safeguard investigation concerning imports of 'non-alloy and alloy steel flat products into India'."

The safeguard is an emergency trade provision under law. "It will be applicable to all developed and developing countries which have a share of more than 3% in India's steel imports volume," a source informed BigMint.

Govt notes evidence to justify injury

On the basis of the application filed by ISA members, and having satisfied itself on the basis of evidence provided therein, the "Authority considers that there is sufficient prima facie evidence to justify the initiation of the safeguard investigation under the Customs Tariff Act, 1975 and the Customs Tariff (Identification and Assessment of Safeguard Duty) Rules, 1997 to determine whether unforeseen developments have resulted in a sudden, sharp and significant increase in imports in recent periods, and whether such increased imports have caused serious injury or pose a threat of serious injury to the domestic industry," the commerce ministry said in its latest notification.

A source informed BigMint, as per procedure, the industry might transit into a provisional duty if the authorities feel it is appropriate to do so. "The industry will definitely be looking for a provisional safeguard duty and expects it to come very, very soon, on priority basis," the source emphasised.

The source further added: "The industry has asked for a 25% safeguard duty but does not yet know what its extent will be."

BigMint also learnt that the "injury to industry is not a pre-qualification, rather the pre-qualification here is the surge in imports". However, the source clarified, because of the injury, in any case, the application was filed for a safeguard duty.

"Let the investigation take its own course now. The positive aspect is that first, it will cover all countries as per the qualification mentioned above, and secondly, it will be on a battery of products, including HR coils, HR plates, CRs, all coated products, including GI, galvalume, galvaneel, ZAM (zinc-aluminium-magnesium) and colour-coated," the source said.

ISA application seeking safeguard measure

It may be mentioned that the Indian Steel Association (ISA), on behalf of its members, namely, ArcelorMittal Nippon Steel India Limited, AMNS Khopoli Limited, JSW Steel Limited, JSW Steel Coated Products Limited, Bhushan Power & Steel Limited, Jindal Steel and Power Limited, and Steel Authority of India Limited had filed an application under the relevant Acts and rules mentioned above, seeking imposition of Safeguard Duty on imports of "non-alloy and alloy steel flat products into India".

These applicants collectively allege, "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. The applicants further allege that imports have taken place in such increased quantities and under such circumstances as to cause or threaten to cause serious injury to the domestic 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 of products under consideration (PUC).

Period of investigation

The period of investigation (POI) for the present investigation is 1 October 2023 to 30 September 2024. The DGTR will also examine data pertaining to 1 April 2021 to 31 March 2022, 1 April 2022 to 31 March 2023, 1 April 2023 to 31 March 2024 and the POI in this investigation.

The following products are excluded from scope of PUC:

a) Cold rolled grain oriented electrical steel (CRGO);

b) Cold rolled non-oriented electrical steel (CRNO) coils and sheets;

c) Coated - electro galvanized steel;

d) Tinplate;

e) Stainless steel.