Government of India has imposed a five-year countervailing duty on certain stainless steel products to rein in cheaper imports. As part of the decision, imports from China would be subjected to 18.95 per cent countervailing duty on the landed value of stainless steel flat products. This duty will remain effective for a period of five years. The duty would be imposed on both hot and cold rolled stainless steel products in any form.
The finance ministry notification said the designated authority (DGAD) had in its final findings found that the domestic industry has suffered material injury due to subsidisation of the subject goods (certain hot rolled and cold rolled stainless steel products) and that the material injury has been caused by the subsidised imports of the subject goods originati
Process Plant and Machinery Association of India which is an association of capital goods in India has submitted a memorandum for exemption of import duty on stainless steel of width 1250 mm and above. Currently, India does not manufacture width above and mostly manufacture low grades of stainless steel and many grades which does not conform to national or international standards . The demand from capital goods industry is for new-age grades and sizes beyond 1,250 mm width. In fact, the industry is buying stainless steel coils and plates in widths as high as 320 0mm which the domestic industry can not manufacture. Capital Goods sector in India contributes roughly 2% towards the country GDP
Indian Stainless Steel Development Association (ISSDA), have urged the government to raise basic customs duty import duty on stainless steel flat products to 15% in the forthcoming budget from the present 7.5% to curb growing imports. Currently, India imports 45% -50% of stainless products hurting the Indian manufacturers. The association have also urged the government to initiate investigation in anti circumvention petition (on width >1250 mm) at the earliest to check unwarranted imports. Duty on critical raw materials like pure nickel, ferro nickel, SS Scrap and MS Scrap also needs to be reduced to NIL from the existing level of 2.5% in order to create a level playing field with China and other countries.