Safeguard Duty on Steel Imports 2025–2028: Complete Guide

India’s safeguard duty on flat steel imports is one of the most significant trade policy measures affecting the steel market right now. Whether you’re importing steel, competing against imports, or just trying to understand why domestic prices have a floor, you need to understand how this duty works. Here’s the complete guide.

What Is the Safeguard Duty?

A safeguard duty is a temporary import tax allowed under WTO rules when a surge in imports causes or threatens serious injury to a domestic industry. India’s Directorate General of Trade Remedies investigated the surge in steel imports and found that it was indeed hurting Indian producers. The government then imposed the duty to provide temporary relief.

This is different from anti-dumping duty (which targets below-cost pricing from specific countries) or countervailing duty (which targets foreign government subsidies). Safeguard duty is broader — it applies to imports from all countries, with some exemptions.

The Current Duty Structure

The duty was first imposed as a provisional 12% levy for 200 days starting April 21, 2025. In December 2025, the government extended it for three years at tapered rates. The first year running from April 2025 to April 2026 carries a 12% rate. The second year drops to 11.5%, and the third year from April 2027 to April 2028 drops further to 11%.

Which Products Are Covered?

The duty applies to flat steel products under HS codes 7208, 7209, 7210, 7211, 7212, 7225 and 7226. In practical terms, this covers hot-rolled coils, sheets and plates, hot-rolled plate mill plates, cold-rolled coils and sheets, galvanised and metallic coated steel products, and colour-coated steel coils and sheets.

What’s Excluded?

Several important product categories are exempt: stainless steel, electrical steel (CRGO and CRNO), tinplate, aluminium-coated steel, nickel-plated steel, and clad plates. Long products like TMT bars, rebar, wire rods, angles, channels, and beams are also not covered — the safeguard duty is specifically for flat products.

The Price Threshold Exemption

This is a critical detail many buyers miss. Imports priced at or above certain CIF thresholds are exempt from the duty. For HRC, the threshold is $675 per MT CIF. For CRC, it’s higher. This means that if you’re importing premium-grade HRC at $700 per MT CIF, no safeguard duty applies.

This threshold was designed to ensure that high-value speciality imports — which don’t compete directly with domestic commodity grades — aren’t penalised. It also means that when global prices are high (as they are during the Hormuz crisis), the duty becomes less relevant because most imports are already above the threshold.

Country Exemptions

Imports from certain developing countries are exempt under WTO rules, but China, Vietnam, and Nepal have been specifically excluded from these exemptions for most product categories. Since China is by far the largest source of steel imports into India, this effectively means the duty applies to the bulk of India’s import volume.

Impact on Domestic Prices

The safeguard duty has been highly effective. Steel imports into India dropped by approximately 39% year-on-year in the first half of fiscal year 2025–26 after the provisional duty was imposed. This reduction in import competition has provided a floor for domestic prices and supported mill profitability.

For buyers, this means domestic prices will remain at a premium to what they would have been without the duty. The protection effectively adds ₹3,000–5,000 per MT to the cost floor for flat steel in India (depending on the product and prevailing global price).

How to Calculate Your Import Cost With the Duty

Use SteelMath’s Landed Cost Calculator to model the full import cost including safeguard duty. The calculation is: CIF Price + Basic Custom Duty (7.5% for most steel) + Safeguard Duty (12%) + Social Welfare Surcharge (10% on customs duty) + IGST (18% on the cumulative value).

The compounding of duties means the effective total import tax on steel flat products is currently 40–45% above the CIF price — making imports uncompetitive for most commodity grades.

What This Means for Your Business

If you’re an importer: the safeguard duty combined with Hormuz freight increases makes most flat steel imports unviable at current prices. Focus on domestic sourcing or wait for the duty to taper.

If you’re a domestic mill or trader: the duty provides a pricing umbrella for at least the next two years. Use this period to strengthen customer relationships and operational efficiency.

If you’re a buyer of speciality grades not covered by the duty (stainless, electrical steel, tinplate), your import economics are largely unaffected — though freight and insurance costs are still elevated due to Hormuz.