India Opens Trade Measure Probe on FeMo Imports from Korea

India’s Director General Trade Remadies has initiated Bilateral Safeguard Investigation concerning imports of Ferro Molybdenum from South Korea under India-Korea Comprehensive Economic Partnership Agreement (Bilateral Safeguard Measures) Rules, 2017 after DGTR found that there is prima facie evidence that the imports of the product under consideration have increased in absolute and relative terms, causing serious injury to the domestic producers of the like article in India, and there is causal link between increased imports and serious injury caused to the domestic industry.Having determined that there is prima facie evidence to justify initiation of the safeguard investigation, the Director General considers it appropriate to initiate the investigation in order to determine whether the imports of the product under consideration from Korea RP constitute increased imports and whether the increased imports have caused or are threatening to cause serious injury to the domestic industry.The Indian Ferro Alloy Producers’ Association together with Boon Metal & Alloy, Premier Alloys & Chemicals & Team Ferro Alloys has filed an application alleging increased imports of Ferro Molybdenum causing serious injury to the domestic producers of like or directly competitive product in India.The applicant has claimed that the imports of the product under consideration have increased in absolute terms and in relation to the production and consumption in India. It is noted that there is a sudden, sharp and significant increase in imports of the product between 2018-19 and 2021-22. The applicants have provided information relating to the imports of the product from Korea before tariff concessions. It is seen that there is a significant increase in imports before and after the tariff concessions started. The rate of increase in imports of the subject goods is significant considering the duration, the quantum, the total imports and the consumption in India.The product under consideration in the present investigation is Ferro Molybdenum also described as FeMO in this notification, falling under the HS code 72027000 of the Customs Tariff Act, 1975. It is a hardening agent found in many alloy steels that are heat treatable. It is used in alloy steel, nickel, cobalt, and titanium alloys which are used for the manufacture of various products of strategic importance such as machine parts & tools, military hardware, magnetic alloys, special steel etc.