The India government has imposed a five-year countervailing duty on certain stainless steel products in a move that is tipped to rein in cheaper imports and hopefully, boost production of the metal within the country. 

As part of the decision, imports from China would be subjected to 18.95 per cent countervailing duty on the landed value of stainless steel flat products said a notification on September 7, 2017 issued by the department of revenue under the union     finance ministry. This duty will remain effective for a period of five years. The duty would be imposed on both hot and cold rolled stainless steel products in any form. 

The finance ministry notification said the designated authority (DGAD) had in its final findings found that the domestic industry has suffered material injury due to subsidisation of the subject goods (certain hot rolled and cold rolled stainless steel products) and that the material injury has been caused by the subsidised imports of the subject goods originating in or exported from the subject country (China). 

The decision, long awaited by the domestic industry was taken by the government after nearly a year-long investigation conducted by the Directorate of Anti- Dumping & Allied Duties (DGAD). In its finding DGAD concluded that subsidised imports from China had increased significantly, which has also led to financial losses suffered by the domestic industry. 

Commenting on the government decision, Jindal Stainless vice chairman, Abhyuday Jindal said: “This decision will provide much-needed safeguard from imports. We may also expect better quality compliance since a majority of the substandard stainless steel was being imported from China”.tainless-steel-products/articleshow/60426453.c