Implementation and Exemption Procedures for Safeguard Duty on Non-Alloy and Alloy Steel Flat Products Imported into India

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Dated: 08.05.2026

Implementation and Exemption Procedures for Safeguard Duty on Non-Alloy and Alloy Steel Flat Products Imported into India

The Indian Customs Department has issued Circular No. 23/2026 to clarify the implementation and exemption procedures for the safeguard duty imposed on certain non-alloy and alloy steel flat products imported into India. This article provides a comprehensive overview of the safeguard duty, the exemption criteria, and the procedural requirements for importers.

Background: Safeguard Duty Notification

Under Notification No. 02/2025-Customs (SG) dated 30.12.2025, a safeguard duty has been imposed on the import of specific non-alloy and alloy steel flat products. The objective is to protect the domestic steel industry from a surge in imports that could cause serious injury to local manufacturers.

Key Features of the Circular

Scope of Products Covered
- The safeguard duty applies to various categories of non-alloy and alloy steel flat products, including hot rolled coils, sheets, plates, cold rolled coils and sheets, metallic coated steel, and colour coated coils and sheets.
Exemption Provisions
- The notification provides explicit exemptions based on:
  - CIF Value Thresholds: Imports at or above specified CIF (Cost, Insurance, and Freight) values per metric ton are exempted.
  - Country of Origin: Imports from certain developing countries (excluding China PR, Vietnam, and Nepal for specific products) are exempted.
  - Product Categories: Certain specialized steel products are excluded from the safeguard duty.

Detailed Exemption Criteria

A. CIF Value-Based Exemptions

Importers can claim exemption if the CIF value per metric ton meets or exceeds the following thresholds:

Product Category	CIF Value (USD/MT)	Info Code
Hot Rolled Coils, Sheets and Plates	675	IPCIF01
Hot Rolled Plate Mill Plates	695	IPCIF02
Cold Rolled Coils and Sheets	824	IPCIF03
Metallic Coated Steel Coils and Sheets (incl. Galvanneal, Zinc/Al-Zn coated)	861	IPCIF04
Colour Coated Coils and Sheets	964	IPCIF05

B. Country of Origin-Based Exemptions

Imports from developing countries listed in Notification No. 19/2016-Customs (N.T.), except for certain exclusions, are exempted. The relevant info codes are:

Hot Rolled Coils, Sheets and Plates (excluding China PR and Vietnam): DC001
Hot Rolled Plate Mill Plates (excluding China PR): DC002
Cold Rolled Coils and Sheets (excluding China PR and Nepal): DC003
Metallic Coated Steel Coils and Sheets (excluding Vietnam, China PR, and Nepal): DC004
Colour Coated Coils and Sheets (excluding China PR and Nepal): DC005

C. Product Category-Based Exclusions

Certain specialized steel products are entirely excluded from the safeguard duty. These include, but are not limited to:

Cold Rolled Grain Oriented Electrical Steel (CRGO) (EP01)
Cold Rolled Non-Oriented Electrical Steel (CRNO) (EP02)
Coated – Electro Galvanized Steel (EP03)
Tinplate (EP04)
Stainless steel (EP05)
Nickel, Rubber, Brass, Copper, Silver, Titanium, Aluminium, and Cobalt coated/plated steel products (see codes EP06 to EP22)

Procedural Requirements for Importers

Declaration in Bill of Entry
- Importers seeking exemption must declare the relevant info code (as per the tables above) in the Single Window Table of the Bill of Entry.
- The declaration should state: “We declare that imported items are exempted from safeguard duty under info code _____________”.
System Implementation
- The Customs IT system has been updated to include qualifiers for these exemptions, ensuring smooth and uniform processing of eligible imports.
- DG (Systems) will issue advisories to facilitate electronic filing of these declarations.
Awareness and Compliance
- Customs officers and the trade community are being sensitized to ensure consistent application of these procedures.

Conclusion

The implementation of safeguard duty on non-alloy and alloy steel flat products is accompanied by clear exemption provisions to facilitate legitimate trade and protect domestic industry interests. Importers must carefully review the exemption criteria and ensure accurate declarations to benefit from these provisions.

In case you face any issues related to Indirect Tax-Customs, GST, Foreign Trade Policy (FTP), Arbitration matters and Central Licensing and related advisory matters in India then please feel free to get in touch with SJ EXIM Services.

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Source: CBIC, Ministry of Finance, Govt. of India

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