Government of India imposed a time-bound safeguard duty on imports of specified non-alloy and alloy steel flat products to address the serious injury and import-surge threat faced by the domestic steel industry. The measure aims to curb low-cost shipments, ensure fair competition, and stabilise the domestic market.
Scope of Coverage
- Applies to steel products under tariff headings: 7208, 7209, 7210, 7211, 7212, 7225, 7226
- Covers non-alloy and alloy flat steel products
- Intended to regulate import surges entering the Indian market
Phased Safeguard Duty- Valid for 3 Years
Duty Structure (Ad Valorem)
| Period | Duty Rate |
| 21 Apr 2025 – 20 Apr 2026 | 12% |
| 21 Apr 2026 – 20 Apr 2027 | 11.5% |
| 21 Apr 2027 – 20 Apr 2028 | 11% |
- No duty applies during the interim gap between expiry of provisional duty and notification publication date.
- Duty notified through the Finance Ministry Gazette Notification.
Country- & Product-Based Treatment
Included (Duty Applies)
- Imports from China, Vietnam, Nepal
Excluded / Exempt
- Certain developing countries (subject to product-wise conditions)
- Specialty steel including stainless steel products
- Specified product categories explicitly exempted
Price-Based Exemption Rule
- Safeguard duty will not apply if the CIF import price is
equal to or higher than the notified threshold price - Threshold prices are notified product-wise along with:
- Unit of measurement
- Currency reference
This ensures high-value or premium imports are not penalised.
Valuation & Exchange Rate Provisions
- Exchange rate determined under Section 14, Customs Act 1962
- Relevant date: Date of presentation of Bill of Entry
- CIF import price corresponds to assessable value under Section 14
- Provides transparency and certainty in valuation for importers
Rationale & Background
- Based on recommendation of Directorate General of Trade Remedies (DGTR)
- DGTR found:
- Recent surge in steel imports
- Resulting in serious injury / threat to domestic producers
- Follows earlier temporary 200-day safeguard duty (12%) imposed in April
- Steel Ministry aims to protect domestic capacity from cheap, sub-standard imports
Global Trade Context
- Implemented during heightened global trade tensions in steel
- U.S. tariff measures on steel (beginning under Trump era) triggered:
- Increased scrutiny of Chinese steel exports
- Anti-dumping actions by South Korea, Vietnam and others
- The move aligns India with global defensive trade policies in steel
Significance
- Shields domestic steel manufacturers
- Prevents market distortion due to price-dumping
- Supports capacity utilisation & employment in the sector
- Ensures predictability and rule-based import regime
About Safeguard Duty (Trade Remedy Instrument)
- Provided under:
- Customs Tariff Act, 1975
- WTO Safeguards Agreement
- Imposed when imports cause or threaten serious injury to domestic industry
- Temporary & time-bound → unlike anti-dumping duties
- Applied irrespective of exporting country (unless exemptions notified)
About DGTR (Directorate General of Trade Remedies)
- Nodal agency under Ministry of Commerce & Industry
- Recommends:
- Anti-dumping duty
- Countervailing duty
- Safeguard measures
- Successor to:
- DGAD (Anti-Dumping)
- DG Safeguards
- DG (Safeguards – Customs)
India’s Steel Sector
- Largest producers globally: China, India, Japan, U.S.
- Nodal ministry: Ministry of Steel
- Key PSUs:
- SAIL
- RINL (Vizag Steel)
- Flagship initiative: National Steel Policy, 2017
- Vision: 300 MT steel capacity by 2030-31