India Slaps Anti-Dumping Duty On Steel Imports – Free PDF Download




What is Dumping?

  • If a company exports a product at a price lower than the price it normally charges on its own home market, it is said to be “dumping” the product.

What is anti-dumping duty?

  • It is imposition of levy by importing country in order to counter the dumping of products and save the domestic market.
  • GATT (Article 6) allows countries to take action against dumping.
  • In order to impose this duty, the government has to be able to show that dumping is taking place, calculate the extent of dumping and show that the dumping is causing injury.
  • The duty is imposed only after a thorough investigation by a quasi judicial body, such as DGTR, in India.

Current context

  • India las week slapped definitive anti-dumping duty on certain steel products imported from China, South Korea and Vietnam,
  • After a probe found that these items caused injury to domestic producers.

Which type of steel products?

  • Flat rolled product of steel coated with alloy of aluminium and zinc was exported from these countries below their normal value,
  • Resulting in dumping and causing injury to domestic producers.
  • Provisional anti-dumping duty was already imposed on the product in October 2019.
  • But it expired in April this year.

How much is the duty?

  • The rate of duty imposed varies from country to country and from exporter to exporter.
  • The duty imposed is in the range of USD 13.07 per tonne to USD 173.1 per tonne.
  • For example- Highest rate applicable on exports from China at $128.9 per tonne.

For how much time?

  • The definitive duty imposed last week is applicable for 5 years starting from last October.

Why the duty was imposed?

  • The duty was imposed after the Commerce Ministry’s investigation arm Directorate General of Trade Remedies (DGTR), in its probe, concluded that
  • The product was exported to India by China, Vietnam and Korea below its associated normal value, which resulted in dumping and in turn impacting domestic players.

Impact on Domestic industry

  • While low cost imports edge out competing local producers from the market,
  • They enable those industries using these imports as raw ato become competitive.
  • So far, India has initiated maximum anti-dumping cases against “below-cost” imports from China.
  1. Chemicals and petrochemicals,
  2. Fibres and yarn,
  3. Machinery items,
  4. Pharmaceutical,
  5. Rubber and steel items.

Q) Consider the following about National Steel Policy 2017:

  1. The New Steel Policy, 2017 aspires to achieve 300MT of steel-making capacity by 2030 which would translate into additional investment of Rs. 10 lakh Crore by 2030-31
  2. The policy has set out an objective to Increase per Capita Steel Consumption to 160 Kgs by 2030-31

Which of the above is correct?

  1. A only
  2. B only
  3. Both A and B
  4. Neither A nor B




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