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STAINLESS STEEL IMPORTS: DGS Rejects JSL Plea for Safeguard Duty |
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KOLKATA: Watchdog says the company has failed to prove that imports of the metal have taken a toll on the domestic industry.
The Directorate General of Safeguards (DGS) (Customs & Central Excise) has rejected an application by Jindal Stainless (JSL) for the imposition of safeguard duty on stainless steel imports.
In its recent order, DGS, which comes under the finance ministry's department of revenue, has said the company has failed to prove that there was injury to the domestic industry as a result of imports. Indian consumes 2.3 million tonne (MT) of stainless steel, out of which imports accounted for 0.3 MT, comprising mostly automotive steels not produced in India.
"We do not understand what the government wants. We are disappointed," a Jindal Stainless spokesperson said. "While it has a Make in India campaign, the ground reality is turning out to be different. Dumping of items from China has seen a 100% jump in the past year to two lakh tonnes. The situation is more likely to be `Make in China' and "Trade in India"."
He did not immediately comment on the company"s possible move in light of the order. "It's a fairly recent order, we will have to evaluate it. Let's see how things play out," the spokesperson added. Capacity utilisation is at 65% in the domestic industry .
JSL had earlier filed an application for imposition of safeguard duty on cold rolled flat product of stainless steel of chromium series 400" to protect the domestic producer of this product against serious injury from imports. The DGS investigation examined written submissions from representatives of Posco of South Korea, Maruti Suzuki, Nippon Steel, Nisshin Steel, Sumikin Stainless, Outokumpu Stainless Oyj of Finland, JFE Steel Baharu Stainless of Malaysia and Metal One India and companies like Hindustan Syringes and Medical Devices. The order stated the industry sales have been improving from 2011-12. In the last two years, domestic industry sales increased by over 10.23% from 81,344 units to 89,642 units in the first quarter of FY15. It added domestic makers of utensils have switched to stainless steel grade of 30 BA28 instead of using the 200201 grade that was manufactured by JSL.
It added that anti-dumping duty is already applicable on the 400 series grades to protect the domestic industry. The JSL spokesperson said while utensil makers use the 200 series, some of the 400 series has started coming into manufacture of cutlery sets.
DGS said the injury is not due to imports but the petitioner"s own problems, high startup costs at the new plant in Odisha, excess capacity leading to higher inventory and lower prices. The order added that production, domestic sales, capacity utilisation and productivity have improved, but the domestic industry is suffering losses due to factors like depreciation and finance charges and not imports.
Source : economictimes.indiatimes.com
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