The government has imposed countervailing duty for 5 years on imports of certain flat steel products from China to guard domestic players from imports that are subsidised by exporting nations.
The decision to impose the duty was taken by the finance ministry after the Directorate General of Anti-Dumping and Allied Duties (DGAD) found that despite sufficient demand in India and capacities, the domestic industry has lost sales opportunities, which is a direct consequence of subsidised imports from China.
DGAD is an investigative arm of the commerce ministry.
Countervailing duty is country specific and is imposed to safeguard domestic industry against unfair trade subsidies provided by the local governments of the exporting nations.
While DGAD recommends the duty, finance ministry imposes it. The actual duty imposed will be the difference between the quantum of countervailing duty proposed (which is 18.95 per cent) and anti-dumping duty payable, if any.
The central government, after considering the final findings of the DGAD, "hereby imposes" the duty on these items, the revenue department said in its notification.
Jindal Stainless Ltd and Jindal Stainless (Hisar) Ltd on behalf of the domestic industry had filed the petition for initiation of anti-subsidy/countervailing duty investigation concerning imports of 'flat rolled products of stainless steel' from China.
The move assumes significance as the sector is facing challenges due to cheap steel imports.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)