The Indian government has imposed a Definitive Countervailing Duty of 18.95% on some flat-rolled stainless products, falling under tariff heading HS Code 7219 or 7220, exported from China to India, for a period of five years, to protect the domestic industry from the onslaughts of the cheap imports from China.
Prior to the announcement of the imposition of the duty, the Directorate General of Anti Dumping and Allied Duties (DGAD) had conducted an investigation, which had substantiated the claim by the Indian industry that the influx of cheap imports from China was hurting the domestic industry in terms of the erosion of the margins.
Link to the Notification:
cs-cvd-01-2017
The imposition of the duty is expected to bring in relief to the producers in India, who had been reeling under financial stress on account of the dumping practiced by sellers in China.
Historically, India has always been seen as a country for dumping by China in respect to many product lines. Already, Anti Dumping Duty has been imposed by the Indian government on imports of steel and stainless steel products from China; and also from Japan and South Korea. India has initiated maximum anti-dumping cases against below-cost imports from China.
Moreover, Indian Ferro Chrome producers would also indirectly benefit from the imposition of the countervailing duty on Stainless Steel imports from China, as the production of Stainless Steel will likely rise in India and that would, in turn, translate to increase in demand for Ferro Chrome and Ferro Manganese.
| India Import Stainless Steel under Chapter 7219 & 7220 from China | ||
| Month/Year | HS Code 7219 | HS Code 7220 |
| January’17 | 14,378 | 9,836 |
| February’17 | 6,756 | 7,114 |
| March’17 | 3,400 | 2,475 |
| April’17 | 1,724 | 2,811 |
| May’17 | 5,195 | 7,332 |
| June’17 | 5,114 | 9,214 |
| Total (Jan-Jun) 2017 | 36,567 | 38,782 |
| 2016 | 85,824 | 2,22,886 |
Quantity in MT
Source- DGFT
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