Department of Revenue has notified anti-dumping duty on flat rolled steel products plated or coated with alloys of aluminium and zinc imported from China, Korea and Vietnam. The duty will remain in place for a period of five years. The decision to impose this duty came on the back of recommendations from Commerce Ministry's anti-dumping probe arm Directorate General of Trade Remedies (DGTR). The quantum of anti-dumping, depending on the country of orign and country of export, vary between $13.07 per metric tonne and $173.10 per metric tonne.
"The anti-dumping duty imposed under this notification shall be effective for a period of five years (unless revoked, amended or superseded earlier) from the date of imposition of the provisional anti-dumping duty, that is, October 15, 2019," the department of revenue said in a notification.
Dumping refers to exports by a country or a firm at prices lower than the price of that product in its domestic market. Dumping impacts the price of that product in the targeted country, eating into margins and profits of local manufacturing firms.
Global trade norms allow a country to impose tariffs on such dumped products to provide a level-playing field to domestic manufacturers. Anti-dumping duties are permissible under the World Trade Organisation (WTO) regime The duty is imposed only after a thorough investigation by a quasi-judicial body, such as DGTR, in India.
In its notification on Tuesday, the Department of Revenue said that dumping of flat rolled steel products from China, Korea and Vietnam has caused "material injury" to domestic industry. In its investigation, DGTR found that the specified steel products were exported to India by China, Korea and Vietnam below their associated normal value, thus resulting in dumping.