What is Safeguard Duty ?

Safeguard Duty:

  • The safeguard duty is tariff barrier imposed by government on the commodities to ensure that imports in excessive quantities do not harm the domestic industry.
  • It is mainly temporary measure undertaken by government in defence of the domestic industry which is harmed or has potential threat getting hared due to sudden cheap surge in imports.
  • The duty will be on the products which are imported at or above the minimum import price (MIP), which helps to set a floor price mainly to discourage imports below this price.
  • The main intention of this move is to protect domestic industry from onslaught of cheap steel supplies (imports) from China amid a global glut.