India issues preliminary conclusion on safeguard investigation on imports of alloy and non-alloy flat-rolled steel products

Some information about the case

The case was initiated on the basis of a request from the Indian Steel Association representing many large Indian steel companies such as Arcelor Mittal Nippon Steel, AMNS Khopoli, Jindal Steel and Power, Steel Authority of India….

- Products under investigation: Non-alloy and alloy steel flat products under HS codes: 7208, 7209, 7210, 7211, 7212, 7225, 7226. The scope of products under investigation includes hot-rolled steel products, cold-rolled steel products, anti-corrosion metal-coated steel products (including galvanized steel, cold-galvanized steel, zinc-magnesium alloy-coated steel) and color-coated steel products.

Steel products excluded from the investigation include: cold rolled grain oriented electrical steel, cold rolled grain non-oriented electrical steel coil and sheet, coated-electro galvanized steel, tinplate, and stainless steel.

Investigation period: October 1, 2023 - September 30, 2024. DGTR said it will investigate data from April 1, 2021 - March 31, 2022; April 1, 2022 - March 31, 2023; April 1, 2023 - March 31, 2024 and the investigation period.

- Plaintiff's allegations:

The petitioner alleged that the imports of the subject product into India have increased rapidly, substantially and dramatically, causing serious injury to the domestic industry in India. The petitioner pointed out the unforeseeable factors that caused the sudden increase in imports, including:

- After the United States imposed a 25% tariff on steel under Section 232 of the Trade Expansion Act, many countries have successively applied trade remedies measures on imported steel.

- Significant excess steel production capacity in China, Japan, and South Korea;

- China's domestic policy is to shift long steel production to flat-rolled steel for export;

- China's steel production investment in ASEAN countries;

- India's obligations under GATT 1994 and other agreements

The Plaintiff requested the DGTR to apply provisional safeguard measures due to the existence of critical circumstances and to apply the safeguard measures for a period of 04 years.

Investigation process:

After initiating the investigation, the DGTR gave the parties time to submit comments on the case. The Vietnamese Government, the Vietnam Steel Association and relevant enterprises submitted comments opposing the case to the DGTR on time.

Preliminary Conclusion Contents:

During the course of the investigation, the DGTR has preliminarily concluded that: (i) There has been a sudden, significant and sudden increase in imports of the subject product into India in the recent past, threatening to cause serious injury to the domestic industry producing the subject product; (ii) There is a situation of emergency, and delay in applying the provisional safeguard measure would cause irreparable injury; (iii) It is necessary to apply the provisional safeguard measure immediately. In addition, considering the public interest factor, the DGTR has concluded that the application of the provisional safeguard measure at this time is consistent with the public interest.

With the above conclusion, DGTR proposes to apply provisional safeguard measures in the form of tariffs to eliminate the injury and threat of injury to the domestic industry. Specifically, DGTR recommends applying provisional safeguard duties at the rate of 12% ad valorem for 200 days until the final conclusion is reached on the investigated product.

The DGTR noted that since the products under investigation are diverse and the main cause of injury to the domestic industry is due to imports of products at low prices, having regard to the actual injury, threat of injury and fair selling price, the DGTR recommends that the above provisional safeguard duty shall not be imposed on the products specified in the relevant entry in column (2) of the Table below, when imported into India at a price equal to or higher than the CIF import price as mentioned in the relevant entry in column (3) in the unit in column (4) and currency in column (5) of the Table below, namely:

STT	Product Catalog	Import price (CIF price)	Unit	Money
1	Hot rolled steel coils and plates	675	MT	USD
2	Hot rolled steel plate	695	MT	USD
3	Cold rolled steel in coils and sheets	824	MT	USD
4	Steel coils and sheets, whether or not shaped, coated or clad with zinc or aluminium-zinc or zinc-aluminium-magnesium	861	MT	USD
5	Roll and sheet coated with color, shaped or unshaped	964	MT	USD

Vietnam is not among the developing countries excluded from safeguard measures due to its significant import market share (over 3%) in India.

In addition, the DGTR allows interested parties to submit comments on the scope of products under investigation in the Preliminary Findings. The DGTR will consider the comments of the interested parties while making the Final Findings. If the DGTR excludes certain products from the scope of investigation in the Final Findings, the importer will be refunded the provisional duty already collected (under India's safeguard provisions).

The DGTR allows interested parties to submit comments on the Preliminary Findings within 30 days from 18 March 2025 (i.e., no later than 16 April 2025). Before issuing the Final Findings, the DGTR will hold a hearing, the details of which will be announced on the DGTR website. The DGTR will also consider conducting fact-checking of the submissions, if necessary.

To promptly respond to the incident, the Department of Trade Defense (DTD) recommends that associations and enterprises producing and exporting products subject to investigation/self-defense tax as follows:

(1) Carefully study the Preliminary Conclusion and the product scope issue, and send comments (if any) within the prescribed time limit to the Indian investigation agency.

(2) Closely monitor information from the investigation agency or the PVTM Department website to register to attend the hearing in case DGTR organizes it;

(3) Fully and comprehensively cooperate with the investigating agency in the final investigation stage.

(4) Exchange and coordinate closely with the PVTM Department to receive timely support.

Download Preliminary Conclusion here.

For more information, please contact: Foreign Trade Remedies Handling Department, Trade Remedies Authority, Ministry of Industry and Trade, 23 Ngo Quyen, Hoan Kiem, Hanoi. Officer in charge: Nguyen Thi Thuy. Email: [email protected]; [email protected].

Source: https://moit.gov.vn/tin-tuc/thong-bao/an-do-ban-hanh-ket-luan-so-bo-vu-viec-dieu-tra-tu-ve-doi-voi-mat-hang-thep-can-phang-hop-kim-va-khong-hop-kim-nhap-khau.html

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