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Govt. to review anti-dumping duty on Chinese steel products

Topics Covered: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.

Govt. to review anti-dumping duty on Chinese steel products:


The Directorate General of Trade Remedies (DGTR), under Commerce Ministry, has initiated a probe to review the need for continuing imposition of anti-dumping duty on certain types of steel products imported from China following complaints from domestic industry.

What’s the issue?

Few companies have filed an application before the DGTR for a sunset review of anti-dumping duty imposed on imports of seamless tubes, pipes and hollow profiles of iron, alloy or non-alloy steel from China.

  • The applicants have alleged that dumping of these products from China has continued even after imposition of anti-dumping duty, and there has been a significant increase in the volume of imports.

What Next?

The duty on the product was first imposed in February 2017 and is set to expire on May 16 this year.

DGTR would review the need for continued imposition of the duties in force and examine whether the expiry of existing duties is likely to lead to continuation or recurrence of dumping and impact the domestic industry.

What is Dumping? What is anti dumping duty?

In international trade practise, dumping happens when a country or a firm exports an item at a price lower than the price of that product in its domestic market.

  • Dumping impacts the price of that product in the importing country, hitting margins and profits of local manufacturing firms.
  • Anti-dumping duty is imposed to rectify the situation arising out of the dumping of goods and its trade distortive effect.

According to global trade norms, including the World Trade Organization (WTO) regime, a country is allowed to impose tariffs on such dumped products to provide a level-playing field to domestic manufacturers.

  • The duty is imposed only after a thorough investigation by a quasi-judicial body, such as DGTR, in India.

Steel- imports and exports:

  • India was a net exporter of steel in 2019-20.
  • Capacity for domestic crude steel production increased in the last five years.
  • Crude steel production has increased in the last five years.


Prelims Link:

  1. About DGTR.
  2. What is anti dumping duty?
  3. India’s steel imports and exports.
  4. Steel protesting
  5. Production in India.

Sources: the Hindu.