Govt removes safeguard duty from 37 steel products

A day after extending the minimum import price (MIP) norms on select steel products, the government on Friday removed safeguard duty from another 37 products in the sector, such as flat rolled and hot rolled ones. On Thursday, the government had said it was extending the MIP for 66 steel items for two more months, pruning the existing list which covered 173 such products.  Products which had safeguard or anti-

dumping duties were removed from the new list of MIP products. The range of prices, $341 to $752 a tonne, was not changed. The decisions come after Steel Minister Birender Singh met stakeholders from the industry on July 28 and deliberated on issues affecting the sector, in the backdrop  of a slowdown in the international steel industry. The steel ministry had argued in favour of continuing the MIPs, even batting for inclusion of additional products.

Domestic majors such as JSW, Essar Steel and Tata Steel had argued for extension of this non-tariff barrier for a further six months to curb cheaper imports, mainly from China. On the other hand, the Engineering Exports Promotion Council had strongly opposed this, citing difficulties faced by user industries.

Smaller companies also complained of being forced to buy more expensive steel while global prices are far less.

The commerce ministry had been in favour of reducing the number of product lines under MIP norms or for ending the norms altogether. This is due to mounting pressure from other World Trade Organization members, a ministry official said under condition of anonymity.

STEEL INDUSTRY

MIP

DUTY

BIRENDER SINGH

JSW

ESSAR STEEL

TATA STEEL

CHINA

WORLD TRADE ORGANIZATION

ECONOMY & POLICY

NEWS