Domestic steel producers have failed to get safeguard duty levied on import of hot-rolled coils, sheets, strips.
The Director-General (Safeguards) has in its order stingingly stated that the applicants' industry is not a “domestic industry” and the applicants did not give the requisite information.
On the request of the applicants, a preliminary finding was given recommending safeguard duty at 25 per cent for the product, up to and including CIF value of $600 a tonne up to 20 mm thickness and 2,000 mm width. But no provisional safeguard duty was imposed by the Government. Subsequently, a public hearing was scheduled in September but no applicants attended.
There are five major producers in the country for the product on which the safeguard duty has been sought – Ispat Industries, Essar Steel, Jindal Steel Works, SAIL and Tata Steel. The petition was filed by Ispat Industries and Essar Steel. JSW Steel and SAIL backed the petition.
Stating that the definition of domestic industry does not provide for a safeguard duty support, the Director-General (DG) said the two applicants together constitute only 33 per cent of aggregate production, and “a mere 33 per cent share of total production cannot be said to constitute a major share within the meaning of domestic industry”.
Domestic industry tag
The DG said the applicants do not represent the domestic industry and their collective output does not constitute a major share of the production of the said article.
Referring to the products under probe, the DG said the subject goods are produced and sold in a large number of grades and in a combination of a variety of thickness and widths.
It said various interested parties have pleaded that the initiation notice covers everything under the product category up to 20 mm thickness and 2,000-mm width, whereas the petition excludes plates and universal plates. Due to this exclusion it is not clear what the products are for safeguard measure, the DG said.
Besides, various interested parties have implored that certain products not produced in India have been included in the probe. As these articles are not produced in India, imports of such articles cannot cause injury to the industry, the DG observed.
The products stated in the application are not “like or directly competitive article” to what is manufactured by the domestic industry, said the Director-General (Safeguards). It was also noted that when the product identification itself has come under doubt, the import data marshalled by the applicants cannot be taken into consideration.
Source : Business Line