A countervailing duty of 18.9% has been imposed by the government on hot and cold rolled stainless steel coming in from China. By this move, the domestic industry from the cheap imports coming in from the China will be protected.
As per the Central Board of Excise and Customs, in the country, these products were coming at subsidized rates and injuring the local steel industry. This move is now welcomed by the local steel industry and said that to compete the domestic players will now have a level field.
For five years this duty will be effective. Due to this Chinese imports at subsidized rates had surged and the local industry was facing losses, said by the Directorate General of Anti-Dumping and Allied Duties (DGAD). by China, it was found that 81 known subsidies were given. Here are the subsidies which were divided under five heads including grants (0.55 percent), export financing (0 percent), tax and VAT incentives (2.3 percent), provision of goods and services (15.78 percent) and preferential loans and lending which made up totally a whopping 18.95%.
On April 12 last year by DGAD, this inquiry and investigation had been started when they saw a significant rise in imports of flat stainless steel items at subsidized rates. The domestic market has been distorted by these imports; it was under huge stress and was leading to financial stress in the industry. The steel ministry told that by DGAD Extensive investigations were carried out and the final findings were issued by DGAD vide notification July 4, 2017.
This is the first case of imposition of CVD on any steel product in India, said by the steel secretary Aruna Sharma. From subsidized imports from China, this would provide the much-needed relief to the stainless steel industry. Ordering the stainless steel quality control order (QCO) and many other trade remedial measures, to help the domestic stainless steel industry, the government has made other moves, said by Sharma. The countervailing responsibility in particular to the nation and is billed to secure the domestic market from any business trade subsidies that may be unjust and are being given dispatching nations’ government authorities.