Lok Sabha Question No. 1221 (UNSTARRED), answered on 2016-07-25
Subject: Improts of Metals
Ministry: COMMERCE AND INDUSTRY
Asked by: R. GOPALAKRISHNAN

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO.1221 TO BE ANSWERED ON 25 TH  JULY, 2016

## IMPORTS OF METALS

## 1221. SHRI R. GOPALAKRISHNAN:

Will the Minister of COMMERCE & INDUSTRY ( वािणÏय एवं उɮयोग मंत्री ) be pleased to state:

- (a) whether  cheap  imports  of  Aluminium  and  other  metals  into  the  country  are  causing tremendous pressure on the domestic industries/manufacturers of these metals;
- (b) if so, the details thereof;
- (c) whether the Government has taken measures to protect the domestic metals manufacturers; and
- (d) if so, the details thereof, metal-wise along with the extent to which these measures have been helpful in protecting the domestic industry?

## ANSWER

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## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

- (a) and (b): Excess capacity overseas and downward pressure on international prices in light of the global slowdown has led to enhanced competitive pressure  on domestic producers from foreign suppliers in sectors like steel.Commercial transactions of Aluminium and Copper; two important non-ferrous metals, are based on London Metal Exchange (LME) price. Profitability of the primary producers has come down due to fall in LME prices during 2015.
- (c) to (d): The Foreign Trade Policy (2015-2020) provides safeguards against poor quality imports by  providing  for  Domestic  Laws/  Rules/  Orders/  Regulations  /  Technical  Specifications/ Environmental/ Safety and Health Standards applicable to domestically produced goods to be applicable, mutatis mutandis, to imports, unless specifically exempted.

Thus,standards as laid down by Bureau of Indian Standards (BIS) on domestic goods are also applicable on imported goods.  Imports of steel and steel products have to confirm to standardsas laid down in Steel & Steel Products (Quality Control) Order, 2012 and subsequent amendments thereto.  Similarly, imports of stainless steel have to confirm to Stainless Steel Products (Quality Control) Order, 2016.

Further, any domestic concern arising out of imports are addressed by appropriate trade defense measures like anti - dumping duty, counter - veiling duty and safeguard duty. Whenever  Indian  industry  is  affected  by  cheaper  imports,  it  can  seek  remedies  from  the Government under the above provisions. To  protect  and  eliminate  threat  to  domestic  industry  caused  by  unfair  trade practices  of  dumping  of  goods  into  the  country,  Directorate  General  of  Anti-Dumping  and Allied Duties (DGAD) conducts anti-dumping investigations, on the basis of duly substantiated petition  filed  by  the  domestic  industry.  DGAD  has  imposed  anti-dumping  duty  on  steel products as per Annexure-I. Safeguard  duty  is  also  in  operation  on  Steel  (Seamless  Pipes  and  Tubes;and,Hotrolled flat products of non-alloy and other alloy sheet). On Steel (both flat and non-flat steel)the peak rate of basic customs duty has been increased to 15% in the Union Budget 2015-16, from previous level of 10%.Government has also  imposed minimum import price on 173 steel productsvide Notification No.38/2015-20 dated 5.2.2016 to check its cheap imports. The  Government  of  India  has  also  increased  the  import  duty  on  unwrought aluminium and other aluminium products by 2.5 percent with effect from 1.3.2016.

*****

## Status of anti - dumping duty on Steel Products (As on 20.07.2016)

|   S.No. | Product                                                                          | Country (ies) involved                                                  | Current status                                                                                                       |
|---------|----------------------------------------------------------------------------------|-------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------|
|       1 | Steel Wheels                                                                     | China PR                                                                | Duty imposed on 26.3.2013 in the range of US $ 512-613 per MT. Duty is in force upto 25.3.2018.                      |
|       2 | Cold Rolled Flat Products of Stainless Steel                                     | China PR, Korea, European Union, South Africa, Taiwan, Thailand and USA | Duty imposed on 11.12.2015 in the range of 4.58 to 57.39% of landed value. Duty in force upto 10.12.2020.            |
|       3 | Certain Hot Rolled Flat Products of Steel                                        | European Union, Korea, South Africa, Taiwan and USA                     | Duty imposed on 25.11.2011 in the range of US$ Nil - 1130.28 / MT. Duty is in force upto 24.11.2016                  |
|       4 | Stainless Steel Cold Rolled Flat Products of 400 series having width below 600mm | European Union, Korea and USA                                           | Duty imposed on 4.10.2012 on the difference between US $ 1491 and landed value per MT. Duty in force upto 3.10.2017. |
|       5 | Hot Rolled Flat Product of Stainless Steel of 304 Grade.                         | China PR, Korea RP and Malaysia.                                        | Duty imposed on 5.6.2015 in the range of US$ 180 to 316 per MT. Duty is in force upto 4.6.2020.                      |