Posted on 31 Jan 2020
Move is in compliance with multilateral trade norms as quality requirements same for domestic & foreign manufacturers, say officials
India has sought comments of World Trade Organisation (WTO) members on its proposal to place nine additional steel and steel products, including tin plates, under a quality control order which makes it mandatory for all producers, including those exporting the item from other countries, to obtain a certification from the Bureau of Indian Standards (BIS).
While some members, including the EU, view the move as a possible attempt by India to block imports, the Centre insists that the objective was to ensure the safety of infrastructure projects in the country including housing.
“The order makes it mandatory for all manufacturers in India and all the manufacturers abroad, who intend to export to India, of steel and steel products (which have been specified)… to obtain valid licence from the Bureau of Indian Standards, for use of Standard Mark, before commencement of regular production of such items,” the submission pointed out.
WTO members have been asked to give their comments on the Steel and Steel Products (Quality Control) Fourth Order, 2019, drafted by India’s Steel Ministry, following which the final order and the Gazette notification would be formulated.
So far, India has covered around 67 steel and steel products under the quality control order, which has put pressure on the exporters of the items to India as they now have to get their products tested not only in their own countries but also in India. This is the fourth order drafted by the Steel Ministry in 2019 which, once notified with some of the earlier draft orders, could take up the number of items on which quality restrictions have been imposed to over 100.
“Although exporters from countries such as China, Japan and the European Union may be facing some hassles because of the need for quality certification from India, this measure is in no way against multilateral rules as the same quality requirements are applicable on domestic producers. The measure has been taken to safeguard our people so that risks are minimised,” the official said.
With steel producers globally taking protectionist measures to safeguard the interests of their domestic industry, members such as the EU have hinted that the Indian action may be deliberate and the ultimate goal may be boost domestic production of the commodity.
The EU has been demanding that India should accept the tests carried out in foreign accredited laboratories attesting compliance with ISO standards (or Indian standards) and stop conducting factory inspections in the EU steel mills that have quality management systems as defined in ISO 9001.
India became a net importer of steel in 2018-19 for the first time in three years. The country’s finished steel exports reportedly declined by 34 per cent in the previous fiscal year to 6.36 million tonnes while finished steel imports rose 4.7 per cent to 7.84 million tonnes.
Source:The Hindu Business Line
