Government has decided against imposing anti-dumping duty on certain steel products being imported from countries like China, Japan and Korea. This decision has been taken as the finance ministry has not accepted the recommendations of the directorate general of trade remedies (DGTR) – the investigating arm of the commerce ministry.
DGTR had conducted a probe against imports of “Cold Rolled or cold reduced flat steel products of iron or non-alloy steel, or other alloy steel of all width and thickness”, following complaints filed by domestic manufacturers of these products.
On both these categories of steel, the directorate on September 14, 2021, had recommended the imposition of definitive anti-dumping duties.
While DGTR recommends the duty, finance ministry’s revenue department takes the final decision to impose the duties.
In separate office memorandums, the department has said that “the central government, after considering the final findings of DGTR), has decided not to accept the recommendations”.
The directorate had concluded in its findings that cold-rolled products are being dumped by companies from China, Japan, Korea and Ukraine; and hot-rolled goods are dumped from China, Japan, Korea, Russia, Brazil and Indonesia.
India has a free trade agreement with Japan and Korea.
In international trade parlance, dumping happens when a country or a firm exports an item at a price lower than the price of that product in its domestic market.
Dumping impacts the price of that product in the importing country, hitting the margins and profits of manufacturing firms.