DGTR Recommends Safeguard Duty on Flat Steel Imports for 3 Years

The Directorate General of Trade Remedies (DGTR) has recommended a final safeguard duty of 12% in the first year, 11.5% in the second, and 11% in the third year on imports of certain flat steel products to protect domestic manufacturers from sudden increases in inbound shipments. China, Korea, Japan, Vietnam, and Nepal are the top exporters of these goods to India. The duty will be levied if import prices are below certain thresholds.

The Directorate General of Trade Remedies (DGTR) has recommended a final safeguard duty of 12% in the first year, 11.5% in the second, and 11% in the third year on imports of certain flat steel products to protect domestic manufacturers from sudden increases in inbound shipments. China, Korea, Japan, Vietnam, and Nepal are the top exporters of these goods to India. The duty will be levied if import prices are below certain thresholds.

The DGTR's recommendation comes after a comprehensive investigation that found that the surge in imports of hot-rolled flat products has caused "serious injury" and poses a "grave threat" to the domestic industry [2]. The proposed safeguard duty rates are designed to provide "adjustment time" for the industry to restructure costs and diversify product offerings.

The DGTR's findings reveal a dramatic erosion of global steel prices, with export offers for hot-rolled coil falling to $450 per tonne in May 2025, lower than levels 30 years ago [2]. Such inflows have significantly undercut Indian producers, suppressing prices and wiping out profitability even as companies ramped up capacity.

The recommendation is a major win for domestic majors such as SAIL, JSW Steel, Jindal Steel, and ArcelorMittal Nippon Steel India (AM/NS India), who had petitioned for protection [2]. However, downstream users, especially car-makers, strongly opposed the move, warning that the duties will drive up costs and disrupt supply chains [2].

The safeguard recommendation has already drawn sharp criticism from exporting countries, who argue that the measure is "excessive" and "legally unsustainable" under WTO norms [2]. They claim that much of their exports to India are specialized grades not produced domestically and therefore cannot be held responsible for injury.

The Finance Ministry will now decide whether to implement the DGTR's recommendation. If notified, this would mark India's first major safeguard action in steel in nearly a decade, underlining the Modi government's resolve to defend core industries.

References:
[1] https://www.bigmint.co/insights/detail/india-imposes-anti-dumping-duty-on-hot-rolled-flat-steel-imports-from-vietnam-672313
[2] https://www.thehindubusinessline.com/economy/dgtr-recommends-3-year-safeguard-duty-on-steel-imports-12-in-yr-1-115-in-yr-2-and-11-in-yr-3/article69943943.ece