In response to a transformative shift in the dynamics of India's steel industry, the Ministry of Steel is actively engaged in discussions with major domestic steel producers to explore strategies aimed at restricting imports into the country. Government sources disclosed on Thursday, December 14, that talks are underway with prominent steel companies, including Tata Steel, SAIL, RINL, JSW Steel, and JSPL.
Key Measures Under Consideration:
Tariff Quota System: One of the key options on the table is the implementation of a tariff quota system, mirroring the model adopted by the European Union. Under this system, an upper limit is set for imports into India from exporting countries. Once this limit is reached, a safeguard duty is triggered for subsequent shipments.
Removal of Lesser Duty Rules: Discussions include the potential removal of lesser duty rules applied in antidumping investigations. Historically, India has followed a lesser duty rule, imposing duties up to the extent of the dumping margin or injury margin, whichever is lower. The removal of this rule would result in duties being levied on a predetermined price rather than the invoice price.
Port-Based Import Duty Structure: Another measure under consideration involves the establishment of a port-based import duty structure. Imports through designated ports would attract a higher rate of duty, adding a nuanced approach to managing the influx of steel products.
Industry Context:
The move to restrict imports follows India's recent shift into a net importer of steel for the April-November period in the current year. During this period, imports reached an estimated 4.3 million metric tons, surpassing exports, which stood at 4.0 million metric tons.
These deliberations underscore the Ministry of Steel's proactive stance in adapting to industry changes and safeguarding the interests of domestic steel producers. The outcomes of these discussions are poised to shape the trajectory of India's steel sector in the face of evolving global trade dynamics.