Brussels: Indian exports of electrical sheets and stainless steel to the European Union will be subject to tariff quotas as per the provisional safeguard measures approved here on March 27 by the trade body and are targeted at 14 developing countries.

They include China, Taiwan, Iran, Indonesia, Malaysia, Vietnam, Argentina and Brazil.

The quota for electrical sheets has been fixed at 41,444 tonnes and for stainless steel wire at 18,547 tonnes.

India's steel exports to the EU amounted to 517,000 tonnes in 2000, and to under 300,000 tonnes in 2001 (based on available EU figures).

The additional duty rate is 15 per cent for both products and represents the difference between import prices and the cost of production in the EU. It comes into force only after the tariff quotas have been exhausted.

The quotas will be allocated on a "first come first served" basis. The measures which come into force next month will last six months, after which they could be made definitive, modified or withdrawn.

Non-alloy hotrolled coils and flanges exported from China will also be placed under import restrictions.

The safeguard measures are being introduced by the 15-member body in order to prevent exports being diverted from the US which raised import duties on steel products.

EU imported 27 million tonnes of steel last year against American imports of 28 million tonnes.

The trade body believes that around 15 million tonnes of steel products are covered by the US measures and risk being diverted to the EU. This amount is equal to the total EU imports of the products in 2000.

PTI