NEW DELHI: The government is set to impose safeguard duty of up to 35 per cent on some aluminum products for two years to protect the domestic industry against cheap Chinese imports.
"The Board of Safeguards which is headed by Commerce Secretary has approved the imposition of the duty for two years," an official said. The Directorate General of Safeguards had however, recommended the duty for four years, he said.
The duty would be imposed on aluminum sheets and foils. A provisional duty of up to 35 per cent 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 Directorate had in January initiated a probe into cheap arrival of aluminum products into India.
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.
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.
Source The Economic Times