Probe on aluminium imports from China terminated

31 Oct 2011 Evaluate

The government has ended review of safeguard duty on import of certain aluminium products from China, as the domestic industry did not press for continuation of the tax. The revenue department under the ministry of finance in its notification said that 'the review safeguard investigation...concerning imports of aluminium flat rolled products and aluminium foil into India from China is hereby terminated.'

The review examination, which started in February 2011, was terminated as applicants the Aluminium Association of India asked to end the probe. The Aluminium Association of India in February this year had asked to review for continued impose of tax for another 2 years, by arguing that the imports were causing market disruption.

The Aluminium Association of India in the application had said that the expiry of safeguard duty would cause damage to the domestic industry. The industrial body had also submitted evidences of continued imports and threat to market disruption in support of their claim.

The Directorate General of Safeguard in the Revenue Department said that the investigation has become 'infructuous' upon request for withdrawal of the probe application.

Despite the impose of the safeguard duty, during 2010-11, the import of aluminium flat rolled products and aluminium foil from China surged by 28.87% and 28.36% from last year. Normally a country imposes safeguard duty to provide temporary relief to domestic producers whereas they adjust to the pricing tactics of competitive foreign players.