India Ponders Safeguard Measures on Steel Imports

SEATTLE (Scrap Monster): The Indian government plans to introduce safeguard measures on imports of certain steel items. The move comes amidst surge in steel imports into the country from China and Chinese imports routed through Vietnam. The administration also considers other alternatives including import restrictions across ports and withdrawing the lesser duty rule.

The Steel Ministry plans to hold discussions on the above three options with various key industry stakeholders including steel trade bodies and major integrated steelmakers. Discussions are in progress already and that implementing tariff quotas on imports similar to EU quota system would be the preferred option, the Ministry official said.

Each exporting country will be allotted a tariff quota for steel imports into the country. he exports that are within the prescribed limit will have no or negligible duty. For any exports that exceed the limit, safeguard duty or tariff will come into effect. The tariff quota system is in practice in various countries including the US, EU, Canada, Australia, Japan and New Zealand.

According to Indian Steel Ministry sources, the country turned net importer of steel during April-Nov ’23- the first eight months of the current fiscal year, as exports witnessed drastic decline. The finished steel imports totalled 4.3 million tonnes (mt) during the eight-month period, higher than exports, which stood at 4.0 mt.