Government Shields Indian Steel Sector with Three-Year Safeguard Duty Plan amid Import Surge [Read Notification]

The Ministry of Finance's Department of Revenue on December 30, 2025 via Notification No. 02/2025-Customs (SG) dated 30.12.2025 will now impose a permanent safeguard duty on certain types of steel flat products for three years as recommended by the Director General of Trade Remedies (DGTR).

The duty has been introduced to counteract the significant, sudden increase in imported products that have harmed domestic manufacturers and it would replace the provisional duty that had originally been set for 200 days.

Triggering Import Surge

DGTR's preliminary findings on March 18, 2025, identified a sharp increase in imports of subject goods, threatening domestic industry. Final findings on August 16, 2025, confirmed this surge was causing actual and potential serious injury to Indian steel producers. The action stems from Section 8B of the Customs Tariff Act, 1975, read with the Safeguard Measures Rules, 1997.

Covered Products and Rates

The duty is applicable to hot-rolled coils/sheets/plates, hot-rolled plate mill plates, cold-rolled coils/sheets, metallic coated steel coils/sheets, and colour coated coils/sheets under tariff headings 7208, 7209, 7210, 7211, 7212, 7225, and 7226. Duty applies post-provisional lapse up to the day before publication.

Exemptions and Exclusions

No duty shall apply if the CIF import prices meet or exceed thresholds of Hot Rolled Coils/Sheets/Plates at $675/MT, Hot Rolled Plate Mill Plates at $695/MT, Cold Rolled at $824/MT, Metallic Coated at $861/MT, and Colour Coated at $964/MT in USD.

Imports from most developing countries as per Notification No. 19/2016-Customs N.T. are exempt, excluding China PR, Vietnam, and Nepal for specific categories. Excluded products include CRGO, CRNO, tinplate, stainless steel, and various coated/specialty steels like electro-galvanized or nickel-plated.

Implications for Industry

This graduated duty structure provides breathing room for domestic steelmakers to recover from import pressures, fostering competitiveness. CIF basis pricing and exchange rates follow Customs Act, 1962 norms, ensuring fair assessment. The move underscores India's commitment to protecting key sectors amid global trade dynamics.

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