Government weighs 10-per cent safeguard duty on aluminum product imports

The government is likely to impose a 10-per cent safeguard duty on imports of some aluminum products used in the automobile and machinery sector in order to protect the domestic industry from cheap imports mainly from China, South Korea, Oman and Iran.

The director general of safeguards (DGS) has recommended a flat 10 per cent duty on items like aluminum, aluminum waste and scraps following a preliminary investigation into the industry's complaints that a surge in aluminum imports is affecting domestic units.

"On the basis of findings it is seen that increased imports of unwrought aluminum, aluminum waste and aluminum scraps have caused and threatened to cause serious injury to the domestic industry/producers," the DGS said.
 
In an application filed before the DGS, the Aluminium Association of India had said imports of the products under consideration have increased from China both in absolute terms and in relation to Indian production over the years. This has led to a decline in the share of the domestic industry.

Growth in domestic demand is being captured by imports even as domestic industry is facing significant idling of production capacities in both the products under consideration as a result of increased imports, it said.

The domestic industry is now resorting to production cuts and the increased imports are leading to market disruption in both the products under consideration, according to the association.

An inter-ministerial committee, chaired by commerce secretary G K Pillai will now appraise the commerce ministry on the threat level and the safeguard duty to be imposed on such imports.