India imposes heavy taxation on Chinese Stainless Steel
MUMBAI (Scrap Register): A heavy taxation on the import of stainless steel flat products from China has been imposed by India, which is first of its kind. A notification issued by the government states an 18.95 percent 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.
“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 quoted.
During the investigation, it was found that China has 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 percent.