Government imposed this fee on some steel products for 200 days, know the reason – Cross Talk India
On Monday, the government imposed 12 percent provisional security fee for 200 days on five steel product categories including hot rolled coil, sheet, plate. This decision has been taken to protect domestic companies from increasing imports. According to PTI news, the decision has been taken after the recommendation made by DGTR, the investigation branch of the Ministry of Commerce. Last month, DGTR suggested to impose fees.
Import price has been fixed so much
According to the news, according to a notification by the Revenue Department, after considering the findings of the Central Government Director General (Trade Treatment), the government has fixed the import price for five steel product categories between US $ 675 per tonne to $ 964 per tonne. Any shipments imported at a lower price from these import values will be levied. According to the Netification, the product category duty will not be levied if imported on or more on the import price specified on the basis of CIF (cost insurance freight). Product category hot rolled coil, sheet and plate; Hot rolled plate mill plate; Cold rolled coil and sheet; Metallic coated steel coil and sheet; And color coated coils and sheets, whether profiles are done or not.
Started investigating sudden increase in imports
In December last year, the Directorate General of Trade Treatment i.e. DGTR began a sudden increase in imports of ‘non-peer metal and alloy steel flat products’ used in various industries including fabrication, pipe making, construction, capital goods, autos, tractors, bicycles and electrical panels. This investigation is Arcelor Mittal Nippon Steel India; AMNS Khopoli; JSW Steel; JSW Steel Coated Products; Bhushan Power and Steel; Jindal Steel and Power; And the Steel Authority of India Limited, including its members, was made after the Complaint of the Indian Steel Association.
Import has a sudden, sharp and important growth recently
The Directorate had found in its investigation that the import of these products in India has recently occurred sudden, fast and significant growth, causing serious damage to domestic industry/producers and there is a risk of damage. The Directorate has said in the notification of March 18, 2025 that there are serious conditions where any delay in the application of provisional security measures will cause damage, which will be difficult to repair. According to the industry, the existence of excess capacity more than domestic consumption in China, Japan and South Korea has arisen due to a decrease in demand in those countries. The import of these products increased from 293 million tonnes during 2021-22 to 6.612 million tonnes during the investigation period (October 2023 to September 2024, and three preceding Financial Years 2021-24).
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