The Indian government recommends a 12% temporary tax on certain steel products for 200 days, called a safeguard duty, to curb imports, as per the notice.
The Directorate General of Trade Remedies (DGTR), which comes under the federal trade ministry, said in the notice that the “Authority considers that a provisional safeguard duty of 12% will be appropriate to eliminate the serious injury and threat thereof to the domestic industry.”
DGTR invited the remarks on its findings within 30 days following which there shall be an oral hearing before making a final decision, as per the notice.
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The government in last year December has launched an investigation to acknowledge if it must charge a safeguard duty or a temporary tax to curtail steel imports.
The second biggest crude steel producer India shipped in record quantities of finished steel during April-January and was a net importer.
India’s finished steel imports from China, South Korea, and Japan hit a record high in the first 10 months of the fiscal year.
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A surge of inexpensive Chinese steel has compelled India’s smaller mills to reduce operations and consider layoffs, as the nation joins a growing list of countries considering measures to limit imports.
