The Central Government has imposed a safeguard duty on imports of Non-Alloy and Alloy Steel Flat Products to protect the domestic steel industry from serious injury caused by a sudden surge in imports.
The decision follows the final findings of the Director General (Trade Remedies), which concluded that a recent, sharp and significant increase in imports of the subject goods has caused and threatens to cause serious injury to domestic producers.
Accordingly, the Ministry of Finance, Department of Revenue, has notified the imposition of safeguard duty vide Notification No. 02/2025-Customs (SG) dated 30th December, 2025, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i).
Coverage of Goods
The safeguard duty applies to imports of the following steel products, classified under tariff headings 7208, 7209, 7210, 7211, 7212, 7225 and 7226 of the Customs Tariff Act, 1975:
- Hot Rolled Coils, Sheets and Plates
- Hot Rolled Plate Mill Plates
- Cold Rolled Coils and Sheets
- Metallic Coated Steel Coils and Sheets (including Galvanneal and Zinc/Aluminium-based coatings)
- Colour Coated Coils and Sheets
Rate and Period of Safeguard Duty
The safeguard duty shall be levied for a period of three years, effective from the date of levy of the provisional safeguard duty, at the following rates:
- 12% ad valorem from 21st April, 2025 to 20th April, 2026
- 5% ad valorem from 21st April, 2026 to 20th April, 2027
- 11% ad valorem from 21st April, 2027 to 20th April, 2028
However, the duty shall not be levied for the intervening period between the lapse of the provisional safeguard duty and the date of publication of the present notification in the Official Gazette.
Import Price-Based Exemptions
The safeguard duty will not apply to specified product categories when imported at or above the CIF import prices notified for each category, ranging from USD 675 per MT to USD 964 per MT, depending on the product.
Country-Specific Exemptions
Imports from certain developing countries are exempted, subject to product-specific conditions. However, imports originating from China PR, Vietnam, and Nepal have been excluded from these exemptions for specific product categories.
Excluded Products
Several specialized steel products, including electrical steel (CRGO/CRNO), stainless steel, tinplate, aluminium-coated steel, nickel-plated steel, clad plates, and other value-added steel products, have been explicitly excluded from the scope of the safeguard duty.
Objective
The measure aims to provide relief to the domestic steel industry, allowing it time to adjust to increased competition from imports, in accordance with the provisions of the Customs Tariff Act, 1975 and the Safeguard Measures Rules, 1997.
The Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/12/cssg02-2025.pdf
