CII has sought the import of seconds/defectives to be put either on thebanned list or restricted list in order to prevent the flooding of theIndian market by poor quality imports. Alternatively, a higher duty beimposed on such products, said CII.

Welcoming the downward revision of the floor price on prime steel items, CIIsaid that while reduction of the floor price with sunset clause isjustifiable, the move to withdraw floor price from January 1, 2000 withouthaving a suitable alternative to meet the threat of import of steel atdumped prices is a cause of major concern.

CII said the decision to reduce the reference price of certainseconds/defective steel items would make the domestic industry vulnerable toserious material injury leading to India becoming a dumping ground forseconds and defectives.

Considering the fact that Indian steel industry is unable to fileanti-dumping petitions against the erring countries due to non-availabilityof import data for the immediate past three months, industry will not be ina position to fight the threat of material injury in the form of very lowprice of prime varieties particularly from sources like CIS/Russia/SouthAfrica.

CII recommended that the imposition of regulatory duty on prime materials beprovided for beyond December 1999 to take care of any uncertainly. Alsofloor price is not a WTO inconsistent measure and this is fully borne out bythe use of a reference price as a fast-track mechanism to deal with cheapimports by a number of countries.

CII was also of the view that the reference price for seconds/defectives at75 per cent that of the prime category was too low to restrict the flow ofsecond-hand imports and should be hiked to 90 per cent of the average priceof prime materials from non-dumping exports.

About the issue for certification of steel imports, CII said a reputedforeign agency must certify the quality of steel exports to India. This isperfectly justifiable as many countries use individual standards forcertification of imports of industrial products, said CII.

CII believes that support to the Indian steel industry at a time of globalover capacity and dumping is correct, advisable and in keeping withinternational practice. India should take a cue from the US, which issupporting their domestic steel industry and employment, CII added.