New Delhi, September 8, 2017
The Finance Ministry has imposed a definitive Countervailing Duty (CVD) on certain stainless steel product from China.
With this move, stainless steel imports from China will attract a countervailing duty that is equivalent to the difference between 18.95 per cent of the “landed value” of stainless steel flat products and the existing anti-dumping duty applicable on such products.
The countervailing duty will be applicable for a period of five years, unless revoked earlier.
Commenting on the decision, Abhyuday Jindal, Vice-Chairman, Jindal Stainless, said in a statement: “This decision will provide much needed safeguard from imports. Furthermore, we may expect better quality compliance as majority of the substandard stainless steel was being imported from China”.
This countervailing duty would cover products in both hot and cold rolled stages in any form. In its final findings in July, the DGAD concluded that subsidised imports from China had increased significantly.
On August 13, BusinessLine reported that local stainless steel manufacturers had alleged that widths above 1,250 mm are being imported only to circumvent the anti-dumping duty.
“Import trends suggested that these higher width stainless steels were ultimately being slit into narrower widths. By doing so, the importers circumvented the existing duties, resulting in revenue loss to the government,” said a stainless steel manufacturer.
According to industry estimates, the importers incurred a nominal cost of around Rs.1,100 a million tonne for slitting (including cost of scrap generated).
The slitting costs come to approximately Rs.3 a kg and the anti-dumping duty amounted to approx Rs.35 a kg.
[The Hindu Business Line]