Islamabad May 10 2024: In a move to safeguard domestic steel producers, the National Tariff Commission (NTC) has announced the extension of anti-dumping duties on imports of Deformed Concrete Reinforcing Steel Bars (Rebars) from the People’s Republic of China.
The decision came following a comprehensive Sunset Review conducted under Section 58 of the Anti-Dumping Duties Act, 2015.
The review, initiated on October 17, 2022, was prompted by an application from major domestic producers including M/s Amreli Steels Limited, Karachi, M/s Agha Steel Industries Limited, Karachi, and M/s Mughal Iron & Steels Industries Limited, Lahore. These companies sought to address the issue of dumped imports of Rebars from China, citing adverse effects on the domestic industry.
The anti-dumping duty, initially imposed at a rate of 19.15 percent in 2017 for a period of five years, has been extended for another five years with effect from October 17, 2022. The decision to extend the duty was based on the findings of the Sunset Review, which analyzed data from the last three years, spanning from July 01, 2019, to June 30, 2022.
“In our view, continuation of duties will be neutral to positive for list long steel manufacturers, i.e. ASTL, AGHA, and MUGHAL as there were no significant imports from China in last 3-4 years while, reimposition of duties will continue to protect local players” writes Nasheed Malik Analyst at Topline Securities in its research report.
“Import of bars under various PCT codes mentioned in NTC notice were over 125,000 tons in FY16 (before duties) which reduced to just 3-4k tons in FY22” Malik added.
The NTC determined a likelihood of continuation and recurrence of dumping of Rebars from China if the anti-dumping duty were to be terminated. Factors such as the decrease in dumped imports following the imposition of the duty, and the potential for a significant increase in volumes if the duty were lifted, were taken into consideration.
Furthermore, the Commission concluded that the domestic industry would likely suffer material injury in the absence of the anti-dumping duty, impacting production, capacity utilization, sales, market share, profits, and productivity.
In light of these findings, the NTC decided to continue the definitive anti-dumping duty on Rebars from China at the rate of 19.15 percent ad valorem. Importantly, the duty will not be levied on Rebars used as inputs in products solely destined for exports, as covered under specific export schemes exempting customs duty.
The collected anti-dumping duty will be held in a non-lapsable Personal Ledger Account established and maintained by the Commission, in addition to other taxes and duties on Rebars under existing laws. The duty will be collected in the same manner as customs duty and deposited into the designated account with the Federal Treasury Office in Islamabad.
The decision aims to maintain a level playing field for domestic steel producers and protect them from the adverse effects of dumped imports, ensuring the stability and growth of the local industry.
