Pakistan’s National Tariff Commission (NTC) has launched an investigation into alleged circumvention of anti-dumping duties on cold rolled (CR) steel imports from China. The inquiry follows concerns that Chinese exporters are bypassing duties by slightly modifying the product, specifically by exporting CR steel with a width above 1250 mm, instead of the original width of up to 1250 mm covered under the duty regime.
According to the NTC’s preliminary findings, there is sufficient evidence to suggest that the modified CR steel maintains the same essential characteristics and end uses as the product subject to anti-dumping duties. This practice, the Commission notes, could be undermining the effectiveness of the imposed trade remedies.
The investigation was prompted by complaints from domestic producers International Steels Ltd (ISL) and Aisha Steel, who allege that this circumvention is impacting both the pricing and volume of locally produced CR steel, thereby injuring the domestic industry. As a result, the intended relief from anti-dumping measures is not being fully realized.
The product under scrutiny includes flat-rolled products of iron or non-alloy steel with thickness between 0.15 mm and 3.00 mm and width above 1250 mm, cold rolled, uncoated, and of both prime and secondary quality. These are imported in coil form or slit-to-length sheets. However, CR coils and sheets used in outer skins of four-wheeler vehicles, certain auto grades, and TMBP are excluded from the investigation.
These products are mainly used in the manufacture of automotive parts, appliance casings (like refrigerators, washing machines, and ovens), sub-assembly components, pipes, and cabinets, the NTC said.
The affected imports fall under HS codes, including 7209.1510, 7209.1590, 7209.1610, 7209.1690, 7209.1710, 7209.1790, 7209.1810, 7209.1899, 7209.2510, 7209.2590, 7209.2610, 7209.2690, 7209.2710, 7209.2790, 7209.2810 and 7209.2890.
The period of investigation spans from January 1, 2021, to December 31, 2024.
NTC originally imposed definitive anti-dumping duties ranging from 13.17pct to 19.04pct on Chinese CR steel imports in January 2016, based on a complaint by ISL and Aisha Steel. These duties were renewed in January 2021 for another five years following a sunset review, during which the product scope was slightly revised to cover CR steel with a width of up to 1250 mm.