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The government has decided not to impose countervailing duty on certain aluminium products being imported from Malaysia, as the finance ministry has not accepted the recommendations of the directorate general of trade remedies (DGTR).

The commerce ministry's investigation arm DGTR had conducted a probe into alleged exports subsidisation by Malaysia on 'aluminium primary foundry alloy ingot in different forms' following a complaint by the domestic industry and on January 31, 2022 recommended imposition of the duty. The central government, after considering the final findings of the designated authority (DGTR), has decided not to accept the recommendations.

In an application to the directorate, domestic firms had alleged that subsidised imports from Malaysia are causing material injury to them and had requested the imposition of countervailing duties on the imports. While the DGTR recommends the duty, the finance ministry takes the final call on the imposition. Countervailing duty is a country-specific duty imposed to safeguard the domestic industry against unfair trade subsidies provided by local governments of exporting nations.