India to impose safeguard duty on aluminum products
Tuesday, 16 Jun 2009
PTI reported that the Indian government is set to impose safeguard duty of up to 35% on some aluminum products for two years to protect the domestic industry against cheap Chinese imports.
An official said "The Board of Safeguards which is headed by commerce secretary has approved the imposition of the duty for 2 years." The DG of Safeguards had however, recommended the duty for four years.
However, the duty would be imposed on aluminum sheets and foils. A provisional duty of up to 35% was already in place for a period of 200 days. While aluminum sheets are primarily used by sectors such as auto and construction, the foil is widely consumed by the packaging industry.
The aluminum producers led by Aditya Birla Group flagship company Hindalco had filed a petition for levying the duty against China. The other major producers include Nalco and Vedanta.
As per report, safeguard duty is WTO compatible temporary measure that is brought in for a certain time frame to avert any damage to domestic industry from cheap imports.
