New Delhi: India imposed retroactive anti-dumping duties on some steel products of foreign firms including POSCO and Nippon Steel & Sumitomo Metal Corp, the latest in a series of protectionist measures that have already drawn international complaints.
The duties on hot-rolled flat products of alloy or non alloy steel, originating in or exported from China, Japan, Korea, Russia, Brazil and Indonesia, will be effective for five years from 8 August 2016, the Ministry of Finance said in a statement on its website on Friday.
The taxes are one of several measures the government has taken over the past two years to protect India’s steel industry - the world’s third largest by output - and that include putting a floor price on imports.
These measures have prompted the world’s second biggest steel producer Japan to ask the World Trade Organization to set up a dispute settlement panel to examine India’s actions.
Indian companies such as JSW Steel, Tata Steel and SAIL have already benefited from the restrictions on overseas purchases, with imports falling around 37 percent to 7.4 million tonnes and exports jumping 102% to 8.2 million tonnes in the year ended 31 March from a year ago.
The latest duty on hot-rolled steel follows a recommendation from the Directorate General of Anti-Dumping and Allied Duties (DGAD), which has also suggested a similar step for some cold-rolled products. The finance ministry usually accepts all DGAD recommendations that are made after detailed examination.
Some other companies whose products will be affected by the duties include Hyundai Steel Co, JFE Steel Corp , POSCO Daewoo Corporation, Samsung C&T Corp and Mitsui & Co. Reuters