- Safeguard Duty on Steel Imports: India is likely to impose a “safeguard duty” or temporary tax of up to 25% on steel imports to curb cheap imports from China, following broad support from a meeting chaired by Commerce Minister Piyush Goyal.
- Investigation and Assurances: The Directorate General of Trade Remedies is investigating the impact of cheap Chinese imports on domestic steelmakers, with the temporary tax expected to be imposed after the investigation, likely completed within a month. Large steelmakers have assured small industries of steel supplies at reduced prices to alleviate their concerns.
- Support for MSMEs: Micro, small, and medium enterprises (MSMEs) registered with the government will receive steel at FOB export prices, approximately 20% lower than market rates, benefiting around 1 million metric tons of annual consumption. This arrangement addresses small manufacturers’ concerns and removes a major roadblock for the imposition of the temporary tax.
Source a2ztaxcorp
