Union Government imposes safeguard duty on import of steel products
The Union Finance Minister has extended the safeguard duty on import of some steel products by two years i.e till March 2018.
In this regard, the Central Board of Excise and Customs (CBEC) has issued a notification mentioning that safeguard duty will be reduced to 10% in stages till 2008 from current 20%.
The safeguard duty will be imposed on steel products hot-rolled flat products of non-alloy and other alloy steel in coils of 600 mm width.
The duty will be on the products which are imported at or above the minimum import price (MIP), which helps to set a floor price mainly to discourage imports below this price.
The main intention of this move is to protect domestic industry from onslaught of cheap steel supplies (imports) from China amid a global glut.
What is Safeguard Duty?
- The safeguard duty is tariff barrier imposed by government on the commodities to ensure that imports in excessive quantities do not harm the domestic industry.
- It is mainly temporary measure undertaken by government in defence of the domestic industry which is harmed or has potential threat getting hared due to sudden cheap surge in imports.
Categories: Business & Economy Current Affairs 2017