Importing Steel from China to India: 7.5% BCD + 12% Safeguard & the Price-Trigger Escape (2026)

Verified 2026-10-30 against the Ministry of Finance safeguard notification. There is no FTA between China and India — every consignment pays 7.5% basic customs duty + 10% social welfare surcharge on the BCD + 18% IGST, and most flat steel additionally carries a safeguard duty of 12% stepping down to 11% by 2027-28. The notification's escape hatch is a set of CIF price triggers: hot-rolled plate at or above $695/t, HRC at $675/t, CRC at $824/t, metallic coated at $861/t and colour coated at $964/t enters exempt from the safeguard. China is explicitly denied the developing-country exemption. Mill-grade positioning — not routing — decides whether the trigger saves you.

7.5%
BCD (no FTA route)
12→11%
Safeguard, 3-year glide path
$695/t
Plate price trigger — above it, no SG
18%
IGST (input-credit recoverable)
01

The Indian duty stack (2026)

The Indian duty stack on Chinese flat steel, 2026
LayerFlat steel (7208–7226)NotesIGST
7208 / 7209 / 7210 / 7211 / 7212 / 7225 / 7226 — flat steel7.5% BCD+ 10% SWS of BCD+ 18% IGST
Safeguard (SG) on the same chapters12% (to Apr 2026)11.5% (2026/27)11% (2027/28)
Stainless, CR electrical, tinplate7.5% BCD onlyexcluded from SG+ 18% IGST

BCD, SWS and safeguard all stack on CIF; IGST is charged on CIF + all duties and is recoverable as input tax credit for GST-registered importers.

02

Safeguard price triggers — the most engineerable line in Asian steel trade

Notification 02/2025-Customs(SG) (30 December 2025) extended safeguard duties for three years. The structure is unusual and commercially decisive: duties apply only below the CIF trigger price, and China is named in every product row of the developing-country carve-out.

Product categoryCIF triggerDeveloping countries subject
Hot-rolled coils, sheets & plates$675/tChina, Vietnam
Hot-rolled plate-mill plates$695/tChina
Cold-rolled coils & sheets$824/tChina, Nepal
Metallic coated coils & sheets$861/tChina, Vietnam, Nepal
Colour coated coils & sheets$964/tChina, Nepal

How buyers use the trigger: a plate consignment declared at $700/t CIF pays zero safeguard; at $694 it pays 12% ($83/t). Specification upgrades that legitimately lift the invoice price — tighter flatness, ultrasonic testing, alloy additions, cut-to-length — are the standard, customs-proof way to clear the line. This is precisely where Q690E and BS960E earn their premium.

04

Plate under 7225.40 — inside the measure, above the trigger

Plate under 7225.40 is inside the safeguard chapter — the honest reading is that the plate lane is covered, but the $695/t trigger is the designed exit. High-spec plate that invoices above the trigger enters with zero safeguard on top of the 7.5% BCD stack.

For wear plate the arithmetic favours India strongly: NM400/NM450/NM500 invoiced at $760–900/t typically sits above the plate trigger, so the duty exposure collapses to BCD + SWS + IGST. Baohui quotes CIF trigger-aware pricing and supplies the mill certificates that substantiate the declared value.

05

Landed-cost cascade — worked example (25 t NM450 plate, trigger-aware)

LineAmountNote
NM450 plate, 25 t × $795/t CIF$19,875CIF base
BCD 7.5%+$1,491
SWS 10% of BCD+$149
Safeguard 12% (CIF below $695 trigger)+$2,385if plate price under trigger
IGST 18% (on CIF + duties)+$4,203recoverable as input credit
Lande cost ≈ $1,130/tbefore AD exposure

At $700/t CIF (above the $695 trigger) the safeguard line drops to zero and landed cost falls by ~$95/t; IGST is recoverable for GST-registered buyers.

06

Documents Indian customs (ICEGATE) will ask for

  • Commercial invoice, packing list, bill of lading / airway bill
  • Mill test certificate matching the invoiced grade & HS line
  • IEC (Importer Exporter Code) of the Indian consignee
  • GSTIN for input-credit recovery of IGST
  • Insurance certificate (CIF substantiation for trigger assessment)

Change log — what moved, and when

DateChange
2025-04-21Provisional safeguard 12% for 200 days on flat steel
2025-12-18Final AD on CRNO electrical steel: $223.82/t (Baoshan-tier) / $414.92/t (others)
2025-12-30Notification 02/2025-Customs(SG): 12% → 11.5% → 11% over three years, with CIF price triggers; China denied developing-country exemption
2026-04-21SG steps to 11.5% for 2026/27

Related guide: electrical steel

HS 7225 also covers grain-oriented (GO) and non-oriented (NGO) electrical steel — the silicon steel grades used in transformer and motor cores. Read our guide: What is electrical steel — grades, GO vs NGO, and the global market.

India steel import FAQ

Is there any FTA route for Chinese steel into India?

No. There is no India-China FTA, so the full MFN stack applies: 7.5% BCD + 10% SWS on the BCD + 18% IGST, plus safeguard where applicable.

How does the safeguard price trigger work?

Imports with CIF at or above the trigger price (HRC $675/t, plate $695/t, CRC $824/t, metallic coated $861/t, colour coated $964/t) are exempt from the 12→11% safeguard. Below it, the full safeguard applies.

Does the safeguard apply to alloy and wear plate?

Chapters 7225/7226 are covered, so plate is inside the measure — but the $695/t trigger is the designed exemption path. High-spec plate invoiced above $695/t pays no safeguard.

Is the 18% IGST a real cost?

For GST-registered importers it is an input tax credit, recoverable against output GST — a cash-flow cost, not a margin cost.

How long does clearance take in India?

Electronic filing via ICEGATE typically clears in 2–4 working days with complete documents; physical exam or query adds 5–10 days.

Verified · 2026-10-30

Sources & verification

  1. 1Ministry of Finance — Notification 02/2025-Customs(SG) (30 Dec 2025)
  2. 2CBIC — Indian Customs Tariff & ICEGATE
  3. 3Argus Media — India extends safeguard duties on flat steel to 3 years
  4. 4DGTR — trade remedy determinations (CRNO AD)

Figures on this page were verified on 2026-10-30 against the official sources below. Data is reviewed and re-verified monthly; dates of each review are shown on this page.