European Commission has imposed tariff quotas on imports of 23 product categories for a period of 200 days from the entry into force of this regulation. These mean a 25% tariff will be levied on EU imports that exceed a global quota based on the average tonnage from 2015-2017.
The decision follows an investigation initiated due to a complaint made by European steelmakers association Eurofer regarding serious injury caused to domestic industry because of imports.
The announcement made reads as follows – “The provisional safeguard measures should take the form of a system of tariff rate quotas in excess of which an additional duty will be paid.
To ensure access to the Union market to all traditional suppliers, such tariff rate quotas should be based on the average of the annual level of imports in the years 2015, 2016, and 2017. As the tariff rate quotas will be in operation for 200 calendar days, the quotas should be set at a corresponding pro-rata level to the annual figure”.
Which all Indian steel products fall under this tariff ?
Non Alloy and Other Alloy Hot Rolled and cold rolled Sheets and Strips, Electrical sheets, Metallic Coated sheets, Stainless hot rolled and cold rolled sheets and strips, stainless bars and light sections, stainless wire rod are few of the products which will now be subject to 25% import quota in EU.
How will it impact Indian market ?
According to provisional data released by Joint Plant Committee, India exported 9.62 MnT finished steel (alloy and non-alloy) in FY18. Out of this Italy accounted for 1.29 MnT and Belgium – 0.97 MnT.
Indian steel mills used to actively offer HRC for export to European nations but owing to safeguard investigations going on, Indian mills had shifted their interest to SE Asian nations and Middle East in last 2-3 months.
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