India slaps 18.95% countervailing duty on stainless steel imports from China

India has imposed a countervailing duty on imports of stainless steel flats from China in a move to ensure product quality for the consumer and provide a level ground for the domestic producer.

A notification issued by the ministry of finance, dated 7 September 2017, prescribes a total of 18.95 per cent CVD on imports of stainless steel flat products from China for the next five years.

Union minister of steel Birendra Singh India is already the second largest producer of stainless steel and the impost will strengthen the efforts of Indian industry for moving towards better quality and better safety of consumers.

''CVD on stainless steel will strengthen the ongoing efforts of Indian industry for moving towards 100 per cent quality regime for better safety and health of users. This will provide a level playing field to the industry to grow to its full potential after attaining second largest rank in stainless steel production in world in 2016,'' the minister stated.

''This is the first case of imposition of CVD on any steel product in India. This would provide the much needed relief to the stainless steel industry from the subsidised imports from China,'' Aruna Sharma, secretary in the steel ministry said.

Sharma said besides the countervailing duty, the government has promulgated the Stainless Steel Quality Control Order (QCO) and other trade remedial measures in order to help the domestic stainless steel industry.

The Directorate General of Anti-Dumping and Allied Duties (DGAD) initiated the CVD investigations on 12 April 2016 in response to a surge in subsidised imports of stainless steel flat products. These imports were distorting the domestic market, which was under huge stress and was leading to financial stress in the industry. Extensive investigations carried out by the DGAD had established the existence if various state subsidies for stainless steel industry in China.

The final findings by the DGAD, issued in a notification on 4 July 2017, lists a possible 81 known subsidies being provided by China. They were categorized into five different heads including grants (0.55 per cent), export financing (0 percent), tax and VAT incentives (2.3 per cent), provision of goods and services (15.78 per cent) and preferential loans and lending totalling 18.95 per cent.