ISSDA welcomes Government’s move to Impose Countervailing Duty

New Delhi, 11th Sep, 2017. Indian Stainless Steel Development Association (ISSDA), India’s apex stainless steel industry body welcomed the imposition of Countervailing Duty (CVD) on imports of Stainless Steel Flat products by the Ministry of Finance. “This is the first case of imposition of CVD on any steel product in India which would provide the much needed relief to the stainless steel industry from the subsidized Chinese imports”. The notification, dated 7th September 2017, prescribes 18.95% CVD on imports of Stainless steel flat products from China for a period of five years.

Welcoming the imposition of CVD on imports of StainlessSteel Flat products, President- ISSDA, Mr. K K Pahuja, said “This would be abig relief to the domestic players as the huge imports from China had distortedthe domestic stainless steel market. The situation had reached a pinnaclewherein domestic players were constantly reducing prices in order to maintainthe market share and as a result industry was incurring huge financial losses.Several MSME segment businesses were also shut due to subsidized imports fromChina.  The imposition of CVD would help in reviving the industry and itwould regain the lost ground. 

Mr. Pahuja added that, the CVD investigation was initiatedon 12th April 2016 by the DGAD in response to a surge insubsidized imports of stainless steel flat products from China. This wascarried out through a quasi judicial process by involving all interestedparties in the case i.e, exporters, importers, the Chinese Government, domesticplayers and related associations who were all given a chance to offer theirviews. 

Explaining the process involved, he said that the DGAD madeextensive investigation. During the investigation process, DGAD took intoconsideration all the views before issuing the Final Findings vide notificationdated 4th July 2017. 

The final findings list a possible 81 known subsidies beingprovided by China. They were categorized into five different heads includingGrants (0.55%), Export Financing (0%), Tax & VAT incentives (2.3%),Provision of Goods & services (15.78%) and Preferential loans and lending totalling18.95%.

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