India on Friday imposed dumping duties on imports of some stainless steel products from China, the European Union and the United States, in a bid to protect local companies from dumping of cheap products in the country.
The Central Board of Excise and Customs (CBEC) reimposed the duties on the recommendation of the Directorate General of Anti-dumping and Allied Duties (DGAD).
The anti-dumping duties, slapped on cold-rolled flat stainless steel products, range from 4.6 per cent to 57.4 per cent. These products were subject to anti-dumping until April 2015. The new dumping duty on specified cold-rolled flat products will be valid for five years.
The anti-dumping duty will be 57.39 per cent on the imports from China, 5.39 to 13.44 per cent for South Korea, 15.93 per cent for Chinese Taipei, 9.47 per cent for the US, 29.41 to 52.56 per cent for the European Union, 4.58-5.39 per cent for Thailand and 12.34 to 36.91 per cent for South Africa.
Imports of cold-rolled flat stainless steel products from South Korea, South Africa, Taiwan and Thailand will also be taxed.
The measure is intended to give some reprieve to local stainless steel makers, including Jindal Stainless, SAIL and others from cheap imports of the alloy.
''The dumping is likely to continue and the performance of the domestic industry is likely to deteriorate, should the present anti-dumping duty is revoked, and has recommended the imposition of definitive anti-dumping duty on imports…,'' DGAD said in its finding.
Earlier, in June this year, the government had imposed anti-dumping duty on certain category of HR flat products of stainless steel having a width of 600-1,250 mm originating from China, Malaysia and Korea in the range between $108/tonne and $ 316 a tonne.
Imports of stainless steel have nearly doubled in the last four years to 2014-15 at 4.59 lakh tonnes. Cold rolled flat products of stainless steel constitute nearly 75 per cent of the total imports.
The new impost will apply to cold rolled flat products with width of 600 to 1,250 mm. However, industry fears duty evasion as the definition of the products under the new levy left a vast scope for circumvention.
''The duty extension will have only a limited impact as circumvention will continue to take place till the time the government takes a stern action after carrying out a through anti-circumvention investigation. The width limit should be removed,'' said a Jindal Stainless spokesperson.