NEW DELHI : In what may come as a blow to local steelmakers like JSW Steel Ltd and Essar Steel Ltd, Thailand is set to formalise the existing provisional duty with a 21-22% safeguard duty on its imports of hot rolled coils from India from next month, a government official said. Thailand currently imposes 34% provisional duty on such Indian exports going to that country. The provisional safeguard duty was imposed for a period of 200 days, which would come to an end when the current month draws to a close.
Safeguard duty is one of the few trade barriers that are imposed when a surge in imports of a particular product causes serious injury to the domestic industry.
The move may impact overseas trade of firms such as JSW Steel and Essar Steel as they would have to bear the brunt of the trade barrier imposed. In the previous financial year, India had exported iron and steel products to Thailand worth Rs 23.34 bln, whereas it exported the same worth Rs 8.07 bln in Apr-Aug.
-Cogencis
