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Safeguard Scepter Unleashed: India Curtails Dumping of Flat Steel

Synopsis: The Ministry of Finance has imposed a 12% safeguard duty on underpriced imports of alloyed & non-alloyed steel flat products to protect Indian manufacturers. As per Notification No. 01/2025-Customs (SG), minimum CIF price thresholds from $675 to $964 per metric ton have been fixed for categories like hot rolled coils, cold rolled sheets & colour-coated steel, with exemptions for imports priced above these levels.
Tuesday, April 22, 2025
SAFEGUARD
Source : ContentFactory

Imposition of Provisional Safeguard Duty on Import of Certain Steel Flat Products

In view of recent developments regarding the import of certain steel flat products (both non-alloy & alloy variants) into India, the Director General (Trade Remedies), through preliminary findings published under Notification No. 22/01/2024-DGTR dated 18th March 2025, has concluded the following:

Key Observations by DGTR:

1. Significant Surge in Imports:

There has been a sharp, sudden, and significant increase in the volume of imports of specific steel flat products into India.

2. Injury to Domestic Industry:

These rising imports have caused serious injury and pose a continuing threat to Indian manufacturers of such steel goods.

3. Existence of Critical Circumstances:

The situation demands urgent action; any delay in intervention through safeguard measures could lead to irreparable damage to the domestic sector.

4. Need for Provisional Measures:

Hence, provisional safeguard duty is recommended to protect Indian producers temporarily while further investigations continue.

Legal Authority:

Under the powers granted by:

• Section 8B(5) of the Customs Tariff Act, 1975, and

• Rules 10 & 14 of the Customs Tariff (Identification and Assessment of Safeguard Measures) Rules, 1997,

the Central Government of India hereby notifies the imposition of:

12% Ad Valorem Provisional Safeguard Duty

on import of the following steel products under tariff headings:

7208, 7209, 7210, 7211, 7212, 7225, and 7226.

Exemption Based on CIF Import Price Thresholds:

Imports at or above the following CIF-based price thresholds shall be exempt from safeguard duty:

Here is the tabular data converted into clear & detailed paragraph format, in line with your request:

As per the safeguard notification issued by the Ministry of Finance, a minimum import price (MIP) has been fixed on specific categories of imported steel products. These thresholds are based on the CIF (Cost, Insurance, Freight) value and serve as a filter — only those steel products priced below the mentioned limits will attract the 12% safeguard duty, while those priced above are exempt.

Firstly, for Hot Rolled Coils, Sheets, and Plates, the minimum import price has been set at 675 USD per metric ton. These are among the most commonly used steel products in infrastructure, construction, and manufacturing.

Secondly, the threshold for Hot Rolled Plate Mill Plates has been fixed at 695 USD per MT. These thicker, heavier plates are typically used in heavy engineering applications such as shipbuilding, bridges, and pressure vessels.

Thirdly, Cold Rolled Coils and Sheets, which are thinner, smoother, and more precise products used in automotive, appliance, and packaging industries, have been assigned a minimum import price of 824 USD per MT.

Fourth, for Metallic Coated Steel, which includes galvanized steel and advanced coatings like galvanneal, zinc-aluminium (Al-Zn), zinc-aluminium-magnesium (Zn-Al-Mg), and may be profiled or plain, the MIP is set at 861 USD per MT. These coated steels are often used in roofing, cladding, and outdoor fabrication due to their corrosion-resistant properties.

Lastly, Colour Coated Coils and Sheets, whether profiled or flat, are required to meet a minimum import price of 964 USD per MT. These products are typically pre-painted and used in aesthetic applications such as commercial buildings, pre-engineered structures, and decorative facades.

These pricing benchmarks aim to balance trade openness with protection of India’s domestic steel industry by discouraging underpriced imports from flooding the market.

Country-wise Applicability:

This safeguard duty shall not apply to imports originating from developing countries as notified under Section 8B(2) of the Customs Tariff Act, except for:

• China PR

• Vietnam

These two countries will be subject to the safeguard duty.

Duration:

The duty shall be effective for 200 days from the date of this notification's publication in the Official Gazette, unless:

• It is revoked, amended, or superseded earlier.

The duty shall be paid in Indian Rupees.

Exclusions from Scope of "Subject Goods":

The following product categories are specifically excluded from this safeguard measure:

• Cold Rolled Grain Oriented Electrical Steel (CRGO)

• Cold Rolled Non-Oriented Electrical Steel (CRNO)

• Electro Galvanized Steel

• Tinplate

• Stainless Steel

• Nickel Plated/Coated Cold Rolled Steel

• Rubber Coated Steel

• Electro Galvanized Zinc-Nickel Coated Steel

• Bi-metal Sandwich Steel

• Brass Coated Steel Wire

• CRUTONITE, INCONEL

• Aluminium Coated / Al-Si Coated Steel

• Hot Rolled Clad Plates

• Nickel / Copper / Silver / Cobalt / Titanium Coated Steels

• Laminated Electro Galvanized (EGI) Steels

Explanation of Terms:

• CIF (Cost, Insurance, Freight) Import Price:

This refers to the assessable value as determined under Section 14 of the Customs Act, 1962.

• Exchange Rate Determination:

The rate of exchange used will be that notified by the Ministry of Finance under Section 14 of the Customs Act, based on the date of presentation of the Bill of Entry under Section 46.

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