Preliminary findings issued concerning subsidised imports of the stainless steel from Indonesia (07.08.2020)

Product description – This preliminary finding concerns imports of “Flat Rolled Products of Stainless Steel” in all forms including coils, sheets, plates, circles, strips or otherwise. Further, following are excluded from product under consideration:

  1.  Blade Steel, or commercially known as razor blade grade steel used in the production of razor
  2.  Coin Blank falling under 73269099 used in the production of monetary coins.

HS Codes – The product under consideration falls under Customs sub-headings ‘7219’ and ‘7220’. However, these have been considered as indicative only and no way binding on the scope of present investigation.

Uses – The product has numerous application such as in the manufacture of white gold, processing equipment, re-rolling, reactor vessels, material handling equipment, railways, pipes & tubes, automotive components, rail carts, metro coaches, architecture, building and construction, rolled formed sections, industrial fabrications etc.

Country involved – Indonesia

Applicants – Indian Stainless Steel Development Association (ISSDA), Jindal Stainless Limited (JSL), Jindal Stainless (Hisar) Limited and Jindal Stainless Steelway Limited (JSSL)

Date of initiation – 18th October, 2019.

Period of investigation – April 2018 to March 2019

Injury period – 2015-16, 2016-17, 2017-18 and the POI

Subsidy margin – 20-30%

Injury margin – 10-30%

Duty recommended

Producer Proposed Duty
(As a % of CIF Value)
PT Indonesia Guang Ching Nikel and Stainless Steel Industry 22.31%
PT Indonesia Tsingshan Stainless Steel 22.31%
PT Indonesia Ruipu Nickel and Chrome Alloy 22.31%
PT IMR ARC Steel 22.65%
Others 24.83%

Key findings –

1. Annual reports cannot be conclusive factor to decide the issues of relationship between companies.

2. Raw materials are available to the stainless-steel producers in Indonesia at less than adequate remuneration

3. The stainless steel producers are benefitted in terms of exemption of customs duty, Export financing from Indonesian Exim bank.

4. Imports from Indonesia are subsidized and are coming into India in substantial volumes during the POI.

5. Imports are undercutting the prices of the Domestic Industry during the injury period. The performance of the domestic industry has deteriorated during POI.

6. There is a causal link between subsidization of the subject goods and the injury to the domestic industry.

7. Domestic Industry has suffered material injury due to subsidization of the product under consideration.