JINDAL STAINLESS LIMITED ON IMPOSITION OF COUNTERVAILING DUTY ON CERTAIN STAINLESS STEEL PRODUCTS
8th September, 2017, New Delhi: The government of India has imposed countervailing duty on certain stainless steel products which will go a long way in encouraging production of the metal within the country. This much awaited decision, taken by the government after a yearlong meticulous investigation conducted by Directorate of Anti- Dumping & Allied Duties (DGAD), will provide some relief to the domestic industry and provide a level playing field. Welcoming the government’s decision, Vice Chairman – Jindal Stainless, Mr. Abhyuday Jindal said: “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”.
Imports from China would be subjected to 18.95% 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 encompass products in both hot and cold rolled stages in any form. In its finding DGAD concluded that subsidised imports from China had increased significantly. As a result domestic industry continues to suffer financial losses. It is evident from DGAD investigation, that Chinese government is providing various forms of subsidies to support local stainless steel manufacturing units. Countervailing duty is country specific and is imposed to safeguard domestic industry against unfair trade subsidies provided by the local governments of the exporting country.