Central Government imposes Bilateral Safeguard Duty on Korean Ferro Molybdenum Imports w.e.f. 10th October 2023 to Protect Domestic Industry [Read Notification]

On October 9, 2023, the Ministry of Finance, through Notification No. G.S.R.727 (E), announced the imposition of bilateral safeguard duties on imports of Korean Ferro Molybdenum. The primary objective behind this move is to safeguard and bolster the domestic industry. This safeguard duty will take effect from October 10, 2023.

The decision stems from an investigation related to the import of “Ferro Molybdenum,” classified under tariff item 7202 70 00 of the First Schedule to the Customs Tariff Act, 1975. This investigation, carried out by the Directorate General of Trade Remedies (Authority), falls under the provisions of the India-Korea Comprehensive Economic Partnership Agreement, specifically the Bilateral Safeguard Measures Rules of 2017.

The initiation of this investigation was announced through Notification F. No. 22/03/2022-DGTR, dated September 30, 2022, and published in the Gazette of India, Extraordinary, Part I, Section 1, dated September 30, 2022. The investigation aimed to determine whether imports of the subject goods from Korea RP constituted an increase and if this increase posed a serious threat to the domestic industry.

In the final findings of this Bilateral Safeguard investigation, published through F. No. 22/03/2022-DGTR, dated May 29, 2023, and published in the Gazette of India, Extraordinary, Part I, Section 1, dated May 29, 2023, the Authority concluded the following:

1. Imports of the subject goods from the Republic of Korea have indeed increased, meeting the definition of “increased imports” as per the rules and the India-Korea Comprehensive Economic Partnership Agreement.
2. The increased imports have caused significant harm to the domestic industry.
3. A clear causal link exists between the surge in imports and the substantial injury sustained by the domestic industry.

In light of these findings, the Authority recommended the imposition of bilateral safeguard measures. These measures involve an increase in the customs duty rate on subject goods originating in Korea RP and imported into India, as specified in the aforementioned final findings. The objective is to mitigate the injury sustained by the domestic industry.

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