Safeguard Duty of 20% on Wide HR Coils Confirmed
·
Three Year
Duration with Sliding Scale going Down from 20% (Year 1) to 10% (Year 3)
·
Global
Coverage, All Sources, Specially China and Ukraine in Net
·
Turkey (from
5 Feb 2016) and other Developing Countries Excluded
·
Advance
Licence and SEZ Imports Exempted for Export Production
·
Goods
Imported above MIP (See WIndex 46, DIndex 6546 and BIG’s Customs Tariff Ch. 72) Exempted
Click here for Final Findings dated 15.03.2016
DG Safeguard Main Finding of Injury in 15 March 2016 Final Order
In
the given circumstances, an attempt was made to analyse the trend in the period
after the POI i.e. upto 2nd quarter of
2015-16 to draw a clear inference about the possibility of accentuation of the
injury to the domestic industry. The domestic industry vide their post Public
Hearing submissions submitted the domestic data pertaining to certain economic
parameters for the subject “product under consideration” imported into India.
The data analysis is as under:
|
|
2013-14 |
2014-15 |
2015-16
(Annualised on the basis of Q1) |
2015-16
(Annualised on the basis of Q1+Q2) |
|
Total Imports
(MT) |
1252441 |
2644911 |
3524932 |
4587168 |
|
Production (MT) |
17881187 |
17836937 |
17827180 |
16796006 |
|
Domestic Sales
(MT) |
10342565 |
9949214 |
10359716 |
10504640 |
|
Total Demand
(MT) |
22864053 |
25528003 |
28157248 |
30268388 |
|
Market Share
of Import (%) |
5 |
10 |
13 |
15 |
|
Market Share
of DI(%) |
45 |
39 |
37 |
35 |
|
Inventory(MT) |
636879 |
648290 |
657099 |
871440 |
|
Profit/ (Loss)
(Indexed) |
100 |
136 |
(114) |
(120) |
On
scrutiny of the above data it is observed that during the post POI i.e 2015-16(Q1+Q2)(Annualised),
between the period Q1 to Q2, there is a increase in
the imports by about 30%. The market share of imports have increased by about
2% as against the corresponding decline of the market share of the domestic
industry by about 2%. Further, there is a decline of about 6% in production
whereas domestic sales increased only by approximately 1% during the post POI.
This shows that the industry parameters deteriorated sharply between Q1 and Q2
of 2015-16.
Conclusion:
i. There has
been a significant increase in imports of the PUC in absolute terms as well as
in relation to domestic production over the entire POI. This surge in imports
is also quite significant in relation to total demand as well.
ii. The
investigation has indicated that the domestic industry has suffered serious
injury, considering overall performance, on the basis of listed economic
parameters such as market share, and profitability, which have sharply declined
from the base year till 2015-16(Annualised) whereas market share of imports
have increased during the same period. This has caused significant overall
impairment to the domestic industry. This establishes causal link between the
rise in imports and serious injury caused to the domestic industry during the
POI.
iii. The
domestic industry has been able to demonstrate that the developments in the
market for surge in imports of the PUC were unforeseen.
iv. There
will be a negative impact on the downstream industry as a result of safeguard
duty on the PUC which is a raw-material for them.
v. It is also
established that imposition of safeguard duty in this case would be in public
interest because it will aid in recovery of the domestic industry and ensure
that end users get a stable supply of subject goods from the domestic industry.
vi. From the
analysis of post POI data, it has been observed that the position of domestic
industry further deteriorated on account of production, sales & market
share. Thus, I conclude that serious injury/ threat of serious injury exists
and further protection to the domestic industry is required to be extended.
[Customs Notification No. 01 (SG) dated 29th March
2016]
Whereas,
in the matter of import of "Hot-rolled flat products of non-alloy and
other alloy Steel in coils of a width of 600 mm or more” (hereinafter referred
to as the subject goods), falling under heading 7208 or tariff item 7225 30 90
of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) (hereinafter
referred to as the Customs Tariff Act), the Director General (Safeguard), in
his preliminary findings, published vide
number G.S.R. 690 (E), dated the 9th
September, 2015, in the Gazette of India, Extraordinary, Part II, Section 3,
Subsection (i), dated the 9th September, 2015, had
come to the conclusion that increased imports of subject goods into India has
caused and threatened to cause serious injury to the domestic industry and
producers of subject goods, thereby necessitating the imposition of provisional
safeguard duty on imports of the subject goods into India;
And
whereas, on the basis of the aforesaid findings of the Director General
(Safeguard), the Central Government has imposed provisional safeguard duty on
import of the subject goods into India for a period of two hundred days with
effect from the 14th day of September, 2015 vide notification
of the Government of India in the Ministry of Finance (Department of Revenue),
No. 2/2015-Customs (SG), dated the 14th September, 2015 published in the
Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide
number GSR 694 (E), dated the 14th September,
2015;
And
whereas, in the final findings vide
number G.S.R. 308(E), dated the 15th March,
2016, published in the Gazette of India, Extraordinary, Part II, Section 3,
Sub-section (i), the Director General (Safeguard) has
recommended the imposition of safeguard duty on subject goods falling under
heading 7208 or tariff item 7225 30 90 of the First Schedule to the Customs
Tariff Act for a period of two years and six months from the date of levy of
provisional safeguard duty;
Now,
Therefore, in exercise of the powers conferred by sub-section (1) of section 8B
of the Customs Tariff Act, read with rules 12, 14 and 17 of the Customs Tariff
(Identification and Assessment of Safeguard Duty) Rules, 1997 and in
supersession of the notification of the Government of India in the Ministry of
Finance (Department of Revenue), No. 2/2015-Customs(SG), dated the14th
September, 2015 published in the Gazette of India, Extraordinary, Part II,
Section 3, Sub-section (i), vide number
GSR 694 (E), dated the 14th September, 2015, the Central Government, after
considering the said findings of the Director General (Safeguards) and subject
to the provisions of paragraph 2, hereby imposes on subject goods falling under
heading 7208 or tariff item 7225 30 90 of the First Schedule to the Customs
Tariff Act, when imported into India, a safeguard duty at the following rate,
namely:-
(a) twenty
per cent ad valorem minus anti-dumping duty payable, if any, when
imported during the period from 14th September, 2015 to 13th September, 2016
(both days inclusive);
(b) eighteen
per cent ad valorem minus anti-dumping duty payable, if any, when
imported during the period from 14th September, 2016 to 13th March, 2017 (both
days inclusive);
(c) fifteen
per cent ad valorem minus anti-dumping duty payable, if any, when
imported during the period from 14th March, 2017 to 13th September, 2017 (both
days inclusive); and
(d) ten
per cent ad valorem minus anti-dumping duty payable, if any, when
imported during the period from 14th September, 2017 to 13th March, 2018 (both
days inclusive).
2. The safeguard duty shall not be imposed on the subject goods,
falling under tariff item of the First Schedule to the Customs Tariff Act as
specified in the corresponding entry in column (2) of the Table below, when
imported into India, at or above the import price on CIF basis as mentioned in
the corresponding entry in column (3), in the currency as specified in the
corresponding entry in column (5) and as per unit of measurement as specified
in the corresponding entry in column (4) of the said Table, namely :-
|
SNo. |
Tariff
Item |
Import
price on CIF basis |
Unit |
Currency |
|
(1) |
(2) |
(3) |
(4) |
(5) |
|
1 |
7208 10 00 |
445 |
MT |
US Dollar |
|
2 |
7208 25 10 |
500 |
MT |
US Dollar |
|
3 |
7208 25 20 |
500 |
MT |
US Dollar |
|
4 |
7208 25 30 |
445 |
MT |
US Dollar |
|
5 |
7208 25 40 |
445 |
MT |
US Dollar |
|
6 |
7208 25 90 |
500 |
MT |
US Dollar |
|
7 |
7208 26 10 |
500 |
MT |
US Dollar |
|
8 |
7208 26 20 |
500 |
MT |
US Dollar |
|
9 |
7208 26 30 |
445 |
MT |
US Dollar |
|
10 |
7208 26 40 |
445 |
MT |
US Dollar |
|
11 |
7208 26 90 |
500 |
MT |
US Dollar |
|
12 |
7208 27 10 |
500 |
MT |
US Dollar |
|
13 |
7208 27 20 |
500 |
MT |
US Dollar |
|
14 |
7208 27 30 |
445 |
MT |
US Dollar |
|
15 |
7208 27 40 |
445 |
MT |
US Dollar |
|
16 |
7208 27 90 |
500 |
MT |
US Dollar |
|
17 |
7208 36 10 |
500 |
MT |
US Dollar |
|
18 |
7208 36 20 |
500 |
MT |
US Dollar |
|
19 |
7208 36 30 |
445 |
MT |
US Dollar |
|
20 |
7208 36 40 |
445 |
MT |
US Dollar |
|
21 |
7208 36 90 |
500 |
MT |
US Dollar |
|
22 |
7208 37 10 |
500 |
MT |
US Dollar |
|
23 |
7208 37 20 |
500 |
MT |
US Dollar |
|
24 |
7208 37 30 |
445 |
MT |
US Dollar |
|
25 |
7208 37 40 |
445 |
MT |
US Dollar |
|
26 |
7208 37 90 |
500 |
MT |
US Dollar |
|
27 |
7208 38 10 |
500 |
MT |
US Dollar |
|
28 |
7208 38 20 |
500 |
MT |
US Dollar |
|
29 |
7208 38 30 |
445 |
MT |
US Dollar |
|
30 |
7208 38 40 |
445 |
MT |
US Dollar |
|
31 |
7208 38 90 |
500 |
MT |
US Dollar |
|
32 |
7208 39 10 |
500 |
MT |
US Dollar |
|
33 |
7208 39 20 |
500 |
MT |
US Dollar |
|
34 |
7208 39 30 |
445 |
MT |
US Dollar |
|
35 |
7208 39 40 |
445 |
MT |
US Dollar |
|
36 |
7208 39 90 |
500 |
MT |
US Dollar |
|
37 |
7225 30 90 |
445 |
MT |
US Dollar |
Explanation. – For the purpose of this notification
“import price on CIF basis” means the assessable value as determined under section 14 of the Customs
Act, 1962 (52 of 1962). [Para 2 substituted by 02-Cus(SG)/05.08.2016]
3. Nothing
contained in this notification shall apply to imports of subject goods from
countries notified as developing countries under clause (a) of sub-section (6)
of section 8B of the Customs Tariff Act, other than People’s Republic of China
and Ukraine.
Explanation: The following are not included in the scope
of subject goods:
a) Hot-rolled
flat products of steel with nominal width less than 600mm;
b) API
grade steel;
c) Silicon
electrical steel;
d) Hot-rolled
flat products of steel of spring steel quality;
e) Hot-rolled
flat products of steel which are electrolytically
plated or coated with zinc;
f) Hot-rolled
flat products of steel otherwise plated or coated with zinc; and
g) Hot-rolled
flat products of stainless steel.
[F.No.354/219/2015-TRU]