New Delhi (Sputnik) – In a first of its kind move, the Indian government has imposed heavy taxation on the import of stainless steel flat products from China. A notification issued by the finance ministry prescribes an 18.95% countervailing duty (CVD) on imports for the next five years. 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.
India investigators have found that China has been providing 81 types of subsidies to its industries under five different heads including grants (0.55%), export financing (0%), tax & VAT incentives (2.3%), provision of goods & services (15.78%) and preferential loans and lending totaling 18.95%.
"CVD on Stainless Steel will strengthen the ongoing efforts of Indian industry for moving towards 100 % quality regime for better safety and health of users. This will provide a level playing field to the industry to grow to its full potential after attaining 2nd largest rank in stainless steel production in the world in 2016," Narendra Singh Tomar, India's Ministry of Steel said on Friday.
The Indian government had also imposed the Stainless Steel Quality Control Order (QCO) and other trade remedial measures in recent past to save domestic steel companies from stress.