The Indian government has made a rule about the taxes on some steel products that are brought into India. They want to stop many cheap steel products from coming in. Now there is a tax of 12 percent, on some of these steel products that come into India. The Ministry of Finance said this is official. They will keep this tax rule for three years. The Indian government is doing this to help control the steel products that are coming into India.
Tariff Structure and Duration
The tariff rate is going to change over time. It will start at 12 percent in the year. Then in the year the tariff rate will go down to 11.5 percent. After that in the year the tariff rate will go down some more to 11 percent. The government made the tariff rate this way so that it can help producers without hurting them too much. The tariff rate is supposed to help producers by easing the impact slowly.
Countries and Products Covered
The countries and products covered will help us understand what is included. The countries and products covered are the focus.
The tariffs will be on steel imports from countries like China, Vietnam and Nepal. Some developing countries do not have to pay these tariffs. This decision also includes steel products, like stainless steel. India, which makes a lot of steel has had problems with steel imports from other countries. India is the worlds largest steel producer and has had to deal with a lot of pressure from these low-cost steel imports in recent years. The steel imports from countries have been a big issue, for India.
Reason Behind the Decision
The Director General of Trade Remedies recently found out that a big increase in steel imports is really hurting the people who make steel in our country. This is a problem for them. The Director General of Trade Remedies thinks that something needs to be done. So they suggested that the government should add tariffs, on steel imports for three years. Now the government is doing what the Director General of Trade Remedies said.
Previous Temporary Tariffs
Earlier this year, in April, India had imposed a temporary 12 percent tariff on steel imports from all foreign countries. That measure was valid for 200 days and expired last month. The new tariffs replace the temporary arrangement with a longer-term policy.
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