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In view of spurt in the imports under a free trade agreement, the commerce ministry's investigation arm Directorate General of Trade Remedies (DGTR) has recommended increasing customs duty on 'Ferro Molybdenum', used in steel, nickel, cobalt alloys, from South Korea. The Comprehensive Economic Partnership Agreement (CEPA) between the two countries was implemented in January 2010.

In October 2022, India initiated the probe to ascertain if a spurt in the imports from South Korea is hitting the domestic producers. After concluding the probe, DGTR said the imports have increased in absolute terms and in relation to Indian production and total imports.  It said the imports of Ferro Molybdenum increased when the customs duties were eliminated. It also said imports of the products from Korea have increased and constitute increased imports within the meaning of the rules and Korea-India CEPA. It added that due to the spurt in the inbound shipments, domestic industry has suffered a decline in profitability. It is thus considered appropriate to recommend bilateral safeguard measure, accordingly, the director general recommends increasing the rate of customs duty on imports. The measure is recommended for two years.

In the first year, according to DGTR, the duty should be increased by 100 per cent and 75 per cent in the second year. The Indian Ferro Alloy Producers' Association together with Boon Metal & Alloy Corporation, Premier Alloys & Chemicals, and Team Ferro Alloys had filed an application that an increase in imports of the product is causing serious injury to the domestic producers. The application was filed under the bilateral safeguard measures rules of the India-Korea free trade agreement. Under the pact, India has given customs duties concession on this product.