The Directorate General of Trade Remedies (DGTR) has indicated that lifting the current countervailing duties on imports from China and Vietnam would likely harm the domestic industry. The DGTR has suggested extension of the existing duties, proposing a duty rate of up to 29.88%.

The Directorate General of Trade Remedies (DGTR), the investigation arm of India’s commerce ministry, has recommended the continuation of countervailing or anti-subsidy duties on welded stainless steel pipes and tubes imported from China and Vietnam. This recommendation is aimed at protecting domestic manufacturers. 

The DGTR’s notification indicates that the removal of these duties would likely cause injury to the domestic industry. Consequently, the DGTR suggests extending the existing duties, proposing a duty rate of up to 29.88%.

The final decision on imposing these duties rests with the finance ministry. The DGTR’s investigation found that without the anti-subsidy duties, the domestic industry would likely suffer financial losses. The investigation also highlighted that Chinese producers have surplus production capacity, and domestic demand for stainless steel in China has declined.

Earlier, the domestic manufacturers had applied in July 2023 for a sunset review of the anti-subsidy duties, (initially imposed by the revenue department in September 2019), seeking extention of the duties against imports of Welded stainless steel tubes and pipes from China and Vietnam.

These duties were aimed at mitigating the impact of subsidized exports on domestic prices, which harm the margins and profitability of local manufacturers. 

Under global trade norms, countries are permitted to impose countervailing or anti-subsidy duties to ensure fair competition for their domestic industries against subsidized imports.

Source: India Business and Trade