Background and Rationale:

This notification follows the preliminary findings of the Director General (Trade Remedies) vide Notification No. 22/01/2024-DGTR dated March 18, 2025, which observed a sudden and significant surge in imports of various Non-Alloy and Alloy Steel Flat Products. The DGTR concluded that the sharp rise in imports is causing or threatening to cause serious injury to the domestic steel industry, and that immediate safeguard measures are warranted to prevent irreparable harm.

Imposition of Provisional Safeguard Duty:

The Central Government has invoked its powers under Section 8B(5) of the Customs Tariff Act, 1975 to impose a 12% ad valorem provisional safeguard duty on specified imported steel products. The duty applies to imports falling under tariff headings 7208, 7209, 7210, 7211, 7212, 7225, and 7226, which include:

• Hot Rolled coils, sheets and plates
• Hot Rolled Plate Mill Plates
• Cold Rolled coils and sheets
• Metallic Coated Steel (including Galvanneal and Zinc/Aluminium coated products)
• Colour Coated coils and sheets

Exemptions Based on Import Price:

Safeguard duty shall not apply when the CIF (Cost, Insurance, and Freight) import price meets or exceeds the threshold values listed below:

Country-Wise Exemptions:

This duty will not apply to imports from developing countries, except:

• China PR
• Viet Nam

Product Exclusions:

The following products are not covered under the scope of “subject goods” and are excluded from this duty:

• Cold Rolled Grain Oriented and Non-Oriented Electrical Steel
• Electro Galvanized, Tinplate, Stainless, Nickel-Plated, Rubber-Coated, Brass-Coated, and various other coated/laminated steels including INCONEL, CRUTONITE, and Titanium Clad Plates

Additional Clarifications:

• Exchange Rate: The exchange rate for calculating the duty will be as notified under Section 14 of the Customs Act, 1962 and determined as per the Bill of Entry presentation date.
• Import Price (CIF Basis): It refers to the assessable value calculated as per Section 14 of the Customs Act, 1962.
• Duration: The safeguard duty is provisional and valid for 200 days from the notification date, unless revoked or amended earlier.

Conclusion:

This safeguard duty is a temporary protective measure aimed at shielding Indian steel producers from injury caused by a surge in low-priced imports. It ensures stability in the domestic market, allows time for the industry to adjust, and reinforces India’s commitment to fair trade practices.