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India’s Directorate of Revenue Intelligence (DRI) is reportedly planning an investigation into steel imports from Nepal and China, amid rising concerns over duty evasion and substandard product inflows.
Despite limited steel production capabilities, Nepal has emerged as one of India’s top steel import sources, raising suspicions that Chinese steel is being rerouted through Nepal to bypass import duties. Unlike direct Chinese imports, Nepalese steel enters India duty-free under existing trade agreements.
Officials suspect this transshipment strategy helps evade the 12% safeguard duty India imposes on Chinese steel. There are also reports of misuse of BIS (Bureau of Indian Standards) certification, with some Chinese manufacturers allegedly passing off substandard products under the license of certified companies.
Additionally, some Indian importers are said to be adding minimal processing to these products to falsely qualify them as compliant under new Quality Control Orders (QCOs).
The government’s focus is to protect domestic steelmakers from unfair competition and ensure that only quality-compliant steel enters the Indian market. The probe could lead to tighter customs scrutiny and potential regulatory changes.
This move aligns with India’s broader push to uphold product standards and reduce reliance on low-cost imports that compromise industry integrity.
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