Definitive Safeguard Measures on Steel Imports: Notification No. 02/2025–Customs (SG)

The Ministry of Finance, specifically the Department of Revenue, has solidified its stance on protecting the domestic steel industry by enacting definitive safeguard measures. Through the issuance of Notification No. 02/2025–Customs (SG) dated 30th December 2025, the Central Government has accepted the recommendations of the Director General (Trade Remedies) (DGTR) to impose a safeguard duty on specific categories of steel products.

This regulatory move comes as a response to a verified, significant surge in imports that has caused serious injury to domestic producers. The duty is levied retrospectively from the date of the provisional imposition and extends for a total duration of three years.

This detailed guide analyzes the legal framework, the graduated duty structure, product scope, price-based exemptions, and the specific exclusions provided to developing nations.

The imposition of this duty is grounded in the provisions of Section 8B(1) of the Customs Tariff Act, 1975, read alongside Rules 12, 14, and 17 of the Customs Tariff (Identification and Assessment of Safeguard Measures) Rules, 1997.

The Investigation Timeline

The path to this definitive notification involved a rigorous investigation by the DGTR:

  • Preliminary Findings: On 18th March 2025, the DGTR issued Notification No. 22/01/2024-DGTR. This initial report concluded that there was a sudden, sharp, and significant increase in the importation of the subject goods. This surge was deemed to be causing, or threatening to cause, serious injury to the domestic industry.
  • Provisional Duty: Based on these preliminary findings, the Central Government imposed a provisional safeguard duty for a period of 200 days, effective from 21st April 2025, vide Notification No. 01/2025-Customs (SG).
  • Final Findings: The investigation concluded with the Final Findings issued on 16th August 2025 (Notification No. 22/01/2024-DGTR). The DGTR reaffirmed that the import surge necessitated a definitive safeguard measure for a duration of three years.

2. Scope of Subject Goods

The safeguard duty targets "Non-Alloy and Alloy Steel Flat Products." For an assessee or importer to determine liability, it is crucial to verify the tariff classification. The goods fall under the following headings of the First Schedule to the Customs Tariff Act, 1975:

  • 7208
  • 7209
  • 7210
  • 7211
  • 7212
  • 7225
  • 7226

Specific Product Descriptions

The notification explicitly covers the following five categories:

  1. Hot Rolled Coils, Sheets, and Plates.
  2. Hot Rolled Plate Mill Plates.
  3. Cold Rolled Coils and Sheets.
  4. Metallic Coated Steel Coils and Sheets (whether or not profiled). This includes Galvanneal, and coatings with Zinc, Aluminium-Zinc, or Zinc-Aluminium-Magnesium.
  5. Colour Coated Coils and Sheets (whether or not profiled).

3. The Safeguard Duty Structure

The Central Government has adopted a graduated duty structure. The duty is calculated on an ad valorem basis and applies to imports entering India during the specified three-year window. It is important to note that the timeline commences from the date the provisional duty was first levied.

Duty Rates by Period

The applicable rates are as follows: