The government today imposed safeguard duty on import of some aluminium and chemical products.
The move was carried out in a bid to protect the domestic industry from surge in import of these items from countries like China.
The Central Board of Excise and Customs (CBEC) has imposed a safeguard duty of 21 per cent on aluminium flat-rolled products, 35 per cent on aluminium foils and 28 per cent on dimethoate technical, a chemical used in manufacturing products like insecticides.
The duty will be charged till October 8, 2009. Safeguard duty is charged in addition to the applied Customs duty, which is a sum of basic Customs duty, countervailing duty, educational cess and additional Customs duty.
The domestic industry had complained to the Directorate General of Safeguards, a body under the Department of Revenue, about the spike in imports.
On aluminium products, the complaint was filed by the Aluminium Association of India, which has Hindalco and Nalco as its members. The association accounts for 97 per cent of Aluminium Flat-Rolled Products (FRP) and 98 per cent of Aluminium Foil products produced in the country. On Dimethoate Technical, the complaint was filed by Shivalik Rasayan Ltd, a Delhi-based company, which accounts for 100 per cent of the item produced in the country.
All these companies said that they had lost market shares due to the surge in imports during 2008-09. The DGS, after initiating an investigation, recommended the duties.
Government officials had earlier told Business Standard that the country was likely to see a spate of safeguard duties, especially on products imported from China, due to a spike in their imports.
Source : Business Standard