DGFT imposes Countervailing Duty on Welded Stainless-Steel Pipes from China and Vietnam for 5 years [Read Notification]
According to the authority’s findings, the cessation of the countervailing duty would likely lead to the continuation or recurrence of subsidisation, causing injury to India’s domestic industry.
DGFT – DGFT imposes Countervailing Duty – Steel Pipes – Directorate General of Foreign Trade – Taxscan
DGFT – DGFT imposes Countervailing Duty – Steel Pipes – Directorate General of Foreign Trade – Taxscan
The Directorate General of Foreign Trade ( DGFT ) has imposed a countervailing duty on imports of Welded Stainless-Steel Pipes and Tubes originating from or exported by China PR and Vietnam. The imposition of this duty is aimed at addressing the issue of subsidisation that has been negatively impacting India’s domestic stainless-steel industry.
These subject goods fall under various tariff items listed in the First Schedule of the Customs Tariff Act, 1975, and include different categories of welded stainless-steel pipes and tubes. The tariff items affected by this duty include 7304 11 10, 7306 61 00, 7306 90 90, and several others.
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The decision follows the final findings of the designated authority, as notified in the Gazette of India on June 15, 2024, and corrected on August 28, 2024. According to the authority’s findings, the cessation of the countervailing duty would likely lead to the continuation or recurrence of subsidisation, causing injury to India’s domestic industry.
The imposition of this duty is in line with Section 9 of the Customs Tariff Act, 1975, which empowers the government to impose such measures to protect domestic industries from subsidised imports. The relevant rules under the Customs Tariff (Identification, Assessment, and Collection of Countervailing Duty on Subsidised Articles and for Determination of Injury) Rules, 1995, have been invoked to assess the necessity and impact of these duties.
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This new notification supersedes the previous countervailing duty notification issued in 2019. The revised duty rates apply to goods from China and Vietnam and are calculated based on specific producers and exporters. The duty aims to maintain a level playing field for India’s domestic stainless-steel industry and prevent further injury due to unfair trade practices from foreign competitors.
The duties are specified as follows:
TABLE
| S.No. | Tariff Item | Description of goods | Description of goods | Country of export | Producer | Duty amount as a % of CIF Value |
| 1 | 7304 11 10 7304 11 90 7304 41 00 7304 51 10 7304 90 00 7305 11 29 7305 90 99 7306 11 00 7306 21 00 7306 29 19 7306 30 90 7306 40 00 7306 50 00 7306 61 00 7306 69 00 7306 90 11 7306 90 19 or 7306 90 90 | Welded stainless steel pipes and tubes | Any country other than China PR | China PR | Any producer | 29.88 |
| 2 | -do- | -do- | China PR | Any country including China PR | Any producer | 29.88 |
| 3 | -do- | -do- | Vietnam | Any country including Vietnam | Sonha SSP Vietnam Sole Member Company Limited | NIL |
| 4 | -do- | -do- | Vietnam | Any country including Vietnam | Steel 568 Co., Ltd | NIL |
| 5 | -do- | -do- | Vietnam | Any country including Vietnam | Gia Anh Hung Yen Co., Ltd. | 11.96 |
| 6 | -do- | -do- | Vietnam | Any country including Vietnam | Any producer other than 3 to 5 above | 11.96 |
| 7 | -do- | -do- | Any country other than Vietnam | Vietnam | Any producer | 11.96 |
The countervailing duty imposed under this notification shall be levied for a period of five years (unless revoked, superseded or amended earlier) from the date of publication of this notification in the Official Gazette and shall be payable in Indian currency.
To Read the full text of the Order CLICK HERE
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