Government is likely to issue guidelines soon for imposing safeguard duties to counter surge in imports of commodities from countries with which India has signed free trade agreements.
"We have prepared the draft on safeguard duty norms that has been submitted to the Commerce Ministry for approval. The final norms for imposing these duties will be notified shortly by the finance ministry," an official source said.
The drafts or rules are prepared by Directorate General of Safeguards and it is to be issued by Finance Ministry in consultation with commerce ministry.
The government may impose safeguard duties, which could be as high as more than 100 per cent, after thorough investigations confirm that import surge is leading to 'serious injury, market disruption' to domestic industry.
The official said that once the rules are notified, the aggrieved nation or domestic manufacturer can protect thier interests under the safeguard duties.
While imposing the safeguard duties, government will also ensure that the industry adjusts itself to the new situations of competition offered by the increased imports, said the official.
"In the FTA agreement, some countries have already accepted the safeguards provisions but the rules are not yet notified. So, to make the safeguard provisions implementable, the DGS has already sent the draft rules which are in the process of notification," he said.
Referring to the apprehensions of industry about FTA agreements, DGS Director General S S Rana said, "They should not be worried as there are enough provisions to safeguard their interests. They should utilise these provisions more frequently wherever industry people are facing surge in imports."
