KUALA LUMPUR (April 13): The government is imposing definitive safeguard duties of up to 13.9% on imported steel concrete reinforcing bar (rebar), and steel wire rods (SWR) and deformed bar in coils (DBIC).

The Ministry of International Trade and Industry (MITI) said that in accordance with Section 25 of the Safeguards Act 2006, the government has made a final determination to impose the duties for a three-year period.

For rebar, the duties will be imposed from April 14, starting with 13.42%, which will be reduced to 12.27% a year later, and to 11.1% two years later (April 14, 2019).

For SWR and DBIC, the safeguard duties will be imposed from April 15 at 13.9%, which will be reduced to 12.9% after a year and eventually to 11.9%.

MITI said the government initiated two safeguard investigations on imports of rebar, and SWR and DBIC on May 28, 2016 and May 29, 2016 respectively, based on petitions filed by the Malaysia Steel Association (MSA) on behalf of the domestic industry.

"The petition alleged that the increased importation of both products into Malaysia had seriously injured the domestic industry.

"During the investigations, the government assessed the issues and concerns submitted by all interested parties in accordance with the Safeguards Act 2006 and Safeguards Regulations 2007," said MITI.

For SWR and DBIC, the definitive safeguard duties will exclude products with carbon content of 0.6% or more, or diameter greater than 16 millimetres; products imported for the end-usage purposes of automotive, electrical and electronic, oil and gas; and DBIC imported for the end-usage purposes of earthquake proof construction industries of all grades and specifications, the ministry said.