Safeguard Duty Imposed On Steel Flat Product Imports

Notification No. 02/2025-Customs (SG), Dated 30-12-2025

1. Safeguard Duty Imposed on Steel Imports

The Government has issued a notification imposing safeguard duty on imports of specified non-alloy and alloy steel flat products to address serious injury or threat thereof to the domestic steel industry. The duty applies to products falling under tariff headings 7208, 7209, 7210, 7211, 7212, 7225 and 7226 and aims to regulate import surges while ensuring fair competition for domestic manufacturers.

2. Phased Safeguard Duty Rates and Validity Period

The notification prescribes a phased levy of safeguard duty over three years. Imports made from 21 April 2025 to 20 April 2026 will attract duty at 12% ad valorem, followed by 11.5% ad valorem for the period from 21 April 2026 to 20 April 2027, and 11% ad valorem from 21 April 2027 to 20 April 2028. It is clarified that no safeguard duty shall be levied for the interim period between the expiry of the provisional safeguard duty and the day preceding the publication of this notification in the Official Gazette.

3. Exemptions Based on Import Price Thresholds

The safeguard duty will not apply where the CIF import price of the goods is at or above the notified threshold price prescribed for each product category. These threshold prices are specified separately, along with the applicable unit of measurement and currency, ensuring that higher-priced imports do not attract the additional duty burden.

4. Country-Specific and Product-Specific Exclusions

The notification excludes imports from certain developing countries from the scope of safeguard duty, subject to product-wise country exclusions outlined therein. Additionally, specific products have been expressly excluded from the ambit of the safeguard measure, providing clarity and certainty to importers dealing in exempted goods.

5. Valuation, Exchange Rate and Conclusion

For the purpose of calculating safeguard duty, the applicable exchange rate shall be the rate notified under Section 14 of the Customs Act, 1962, with the relevant date being the date of presentation of the bill of entry. The CIF import price shall correspond to the assessable value determined under the same provision. Overall, the notification seeks to strike a balance between protecting domestic industry interests and ensuring transparency and predictability in the import regime.