The Union Finance Ministry has imposed anti-dumping duty on imports of certain steel wire rods from China for a period of five years.
The decision has been taken to guard the interest of domestic players from cheap in-bound shipments.
• The duty was imposed after the Commerce Ministry's Directorate General of Anti-Dumping and Allied Duties (DGAD) recommended duty on such imports.
• In its findings, the DGAD had concluded that the wire rod of alloy or non-alloy steel has been exported to India below the normal value due to which domestic industry has suffered material injury.
• India has already slapped anti-dumping duty on certain cold-rolled flat steel products from four nations including China and South Korea.
In a notification, Department of Revenue said that the anti-dumping duty imposed shall be effective for a period of five years from the date of its imposition and shall be payable in Indian currency.
The concerned steel products are used in many sectors such as automotive components, railway, engineering and construction.
What is an 'Anti-Dumping Duty'
An anti-dumping duty is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value.
The measure is taken to ensure fair trade and provide a level-playing field to the domestic industry.
Dumping is a process where a company exports a product at a price lower than the price it normally charges on its own home market.
To protect local businesses and markets, many countries impose stiff duties on products they believe are being dumped in their national market.
Who: Union Government