Jindal Stainless Limited (JSL) issued press statement confirming that the government of India has imposed countervailing duty on certain stainless steel products. This will go a long way in encouraging production of the metal within the country. This decision is taken by the government after a yearlong meticulous investigation conducted by Directorate of Anti- Dumping & Allied Duties (DGAD), will provide some relief to the domestic industry and provide a level playing field.
Imports from China will be subjected to 18.95% countervailing duty on the landed value of stainless steel flat products. This duty will remain effective for a period of five years. The duty would encompass products in both hot and cold rolled stages in any form. In its finding DGAD concluded that subsidised imports from China had increased significantly. As a result domestic industry continues to suffer financial losses. It is evident from DGAD investigation, that Chinese government is providing various forms of subsidies to support local stainless steel manufacturing units. Countervailing duty is country specific and is imposed to safeguard domestic industry against unfair trade subsidies provided by the local governments of the exporting country.
