The finance ministry is considering a proposal to impose a countervailing duty on steel imports from China, Vivek Johri, chairman of the Central Board of Indirect Taxes and Customs, said.

“The recommendation has come from the Directorate General of Trade Remedies and it is still under examination. We haven’t taken a final decision,” he told reporters at an industry event on Friday.

The commerce ministry has recommended the continuation of an 18.95 per cent countervailing duty (CVD) on certain flat-rolled steel products from China for five years.

The DGTR had conducted a sunset review investigation on imports of ‘’hot rolled and cold rolled stainless steel flat products’’ from China.

Jindal Stainless Ltd and Jindal Stainless (Hisar) Ltd had jointly filed an application before the DGTR for a probe. They had sought the continuation of the duty.

The directorate in its findings has concluded that the Chinese imports are undercutting the domestic prices and there is a likelihood of continuation of subsidisation on the products by China if the existing CVD was discontinued in the light of the surplus capacities maintained by the Chinese producers.

The DGTR has also recommended the continuation of an anti-dumping duty on Chinese steel wheels for five more years with a view to guarding domestic players against cheap imports.

The directorate has recommended $613 per tonne duty on the product. The finance ministry takes the final decision to impose this duty.

The industry has been demanding an increase in the basic customs duty or the levy of an additional safeguard duty on certain products to protect the domestic industry, alleging predatory pricing by overseas steelmakers.

It has also sought a 25 per cent safeguard duty on steel imports from countries with which India has a free trade agreement as more than half of the imports come from these countries.