FinMin probing pipe imports from China,Italy

DGS,a unit of finance ministry,has begun a probe on impact of imports of seamless pipes.

The Directorate General of Safeguards DGS,a unit of the finance ministry has begun an investigation on the impact of large scale imports of seamless pipes and tubes into the country mainly from China and Italy.

Steel firms Jindal SAW,Maharashtra Seamless and Pune-based ISMT had moved the DGS for imposing restrictive duties on such imports for four years,based on which,the probe commenced.

In a notice issued on April 22,the DGS said that there is evidence of increased imports of these products,and added that it has commenced an inquiry on imports occurred between 2009-10 and 2012-13 into the extent of injury caused or are likely to cause to the domestic producers.

The applicants said they account for more than 50 per cent of the total domestic production of seamless pipes and tubes in the country.

The domestic industry has requested for immediate imposition of safeguard duty on import of seamless tubes and pipes into India for a period of four years. They have also sought imposition of provisional safeguard duty in view of the steel deterioration in performance of the domestic industry due to serious injury, the DGS said,and has sought comments from the concerned parties by May 21.

Acknowledging that imports of seamless pipes and tubes into the country has shown a significant increase,the DGS cited the data sourced from the Directorate General of Commercial Intelligence and Statistics to show that imports have increased to 3,73,777 tonnes till 2012-13 from 3,07,581 tonnes in 2009-10,recording an annual increase of 22 per cent.

Although there was a decline in 2012-13,as compared to the previous fiscal,but a quarterly analysis showed a sharp rising trend from the second and third quarters on an absolute basis.

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In view of surging imports and loss of market share,the inventories with the domestic industry have also increased significantly 14,170 tonnes in the April-December of 2012-13 fiscal,from 5691 tonnes in 2009-10.

Endorsing the contention of the complainants,a senior steel ministry official said that the market share of the domestic producers has declined sharply in the recent period whereas share of imports have risen significantly.