The Directorate General of Trade Remedies (DGTR) had on September 14, 2021 recommended imposition of Definitive Anti-Dumping Duty on both these categories of products.
The Finance Ministry rejected the recommendations of DGTR.
The government has decided not to impose anti-dumping duty on imports of certain steel products from countries like China, Japan and South Korea. The Finance Ministry has not accepted the recommendations of the Directorate General of Trade Remedies (DGTR) in this regard. DGTR, the investigation arm of the Ministry of Commerce, had conducted the investigation on complaints from certain domestic manufacturers with respect to ‘cold rolled/cold reduced flat steel products of iron or non-alloy metal and hot rolled flat products of ferrous or non-alloy’.
The Directorate had recommended imposition of Definitive Anti-Dumping Duty on both these categories of products on September 14, 2021. The DGTR recommends the fee, while the revenue department takes the final decision on levying the fee. The department has said that the central government has decided not to accept the recommendations after considering the final decisions of DGTR.
The directorate, after its investigation, concluded that cold rolled products were being dumped by companies from China, Japan, South Korea and Ukraine. At the same time, dumping of hot rolled products is being done from China, Japan, Korea, Russia, Brazil and Indonesia. India has a free trade agreement with Japan and South Korea.
What is dumping?
In the language of international trade, when a country or company exports a product at a price lower than the price of its domestic market, it is called dumping.
Dumping affects the price of that product in the importing country, thereby affecting the margins and profits of manufacturing firms.
As per global trade norms, a country is allowed to levy duty on such dumped products to provide equal opportunity to domestic manufacturers.
As per global trade norms, a country is allowed to levy duty on such dumped products to provide equal opportunity to domestic manufacturers. In India, the fee is levied only after a thorough investigation by the DGTR.
Anti-dumping duty is allowed under the World Trade Organization (WTO) regime. The duty is aimed at ensuring fair trade practices and creating an equal opportunity for foreign producers and exporters to domestic producers.
with PTI input