Union Government Enacts Safeguard Duty on Import of Steel Products [ Current Affairs ]
About safeguard duty: Safeguard duty is imposed by Central Government which empowers by Section 8B of Customs Tariff Act, 1975. The safeguard duty imposes on goods which enter in increased quantities and cause threat of serious injury to domestic industry producing like or directly competitive goods.
About safeguard duty by Union Government on steel products:
- The Union Finance Minister has prolonged the safeguard duty on import of some steel products by two years means till 30th March, 2018.
- The Central Board of Excise and Customs (CBEC) has issued a notification which states that safeguard duty will be reduced to 10 % in phases till 2018 from current 20%.
- As per government, this safeguard duty will be imposed on steel products and flat products of non-alloy and other alloy steel in coils of 600 mm width.
- The duty will be on the products which are imported at or above the minimum import price which helps to set a base price mainly to discourage imports below this price.
- The main purpose of imposes of safe guard duty is to protect domestic industry from occurrence of low-priced steel supplies from China among a global excess.
- In 2012, there was also a safeguard investigation imposed which concerns imports of HR Stainless Steel into India under Rules 5 of the Custom Tariff (Transitional Product Specific Safeguard Duty) Rules, 2002.
- Total imports through September were 5.93 million tonne up 4 % imports from Japan and Korea were up 80 % and 77%, respectively.
- Published on: April 4, 2016