Safeguard duty on aluminium products from China

Special Correspondent

NEW DELHI: Moving against dumping of cheap products, India on Tuesday imposed up to 30 per cent duty on import of key aluminium products from China to protect the domestic industry against cheap shipments. The Government had launched investigations in this case in January this year.

Official sources said the Revenue Department had notified 12-14 per cent duty on aluminium flat sheets, primarily used by sectors such as auto and construction, and 25-30 per cent duty on foils, widely consumed by the packaging industry. The duty would be effective retrospectively from March 23, 2009, for two years.

“Increased import of aluminium flat rolled products and aluminium foil into India from China had caused and threatened to cause market disruption to domestic industry. This had necessitated the imposition of provisional safeguard duty on import,” a notification of the Department of Revenue said.

The Directorate General of Safeguards in January initiated a probe into cheap arrival of aluminium products after the domestic industry had filed a petition for levying the duty against import from China. Safeguard duty is a WTO-compatible temporary measure to avert any damage to domestic industry from cheap imports.