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The levy, known locally as security duty, will be imposed at 12% in the first year, followed by 11.5% in the second year and then 11% in the third year.
The measure, which was published on the official government gazette, excludes imports from some developing countries, although China, Vietnam and Nepal will be subject to the levy. It will also not apply to special steel products such as stainless steel.
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The Union Steel Ministry has repeatedly said that it does not want the domestic steel industry to suffer losses due to cheap imports and substandard products.
The government imposed a temporary 200-day tariff of 12% in April.
The order said the Directorate General of Trade Remedies recommended the three-year duty “in view of the recent, sudden, sharp and significant increase in imports… and threatening to cause serious injury to the domestic industry”.
US President Donald Trump’s import tariffs on steel have sparked a wave of trade friction on Chinese steel, with countries including South Korea and Vietnam imposing anti-dumping levies earlier this year.