Union finance minister, Yashwant Sinha, assured steel and mines minister, Naveen Patnaik, of the duty announcements on Thursday. The mid-term revision of import duties on steel and its inputs, was recommended by a working group, set up by the finance minister last month, to devise a pep-up package for the recession-hit steel industry.

The committee, headed by special secretary, banking, C M Vasudev, suggested stringent steps to check steel imports at prices that hurt steel-makers at home. It proposed a special duty on imports of ``seconds'' and ``defective,'' which have for long been suspected to be a malafide route for importing prime products at price concessions. The panel suggested that alternatively, the duty rates on steel ``seconds'' be raised upto the World Trade Organisation (WTO) bound rate. Theprogressive cutback in duties since the economic reforms and the decontrol of the steel industry, has gone beyond the WTO requirements.

The prevailing customs duty on steel consequently, ranges between 25 per cent and 30 per cent, compared to the WTO bound rate of 50 per cent. The Vasudev panel also advised the commerce ministry to remove steel ``seconds'' and ``defective'' from the open general licence (OGL) list, subject to a floor price. It called for a ``fast-track mechanism'' to check dumping. The revenue department, which is deliberating on the recommendations of the committee, may announce a floor price for importing certain grades of steel. Imports beyond the floor price will automatically become eligible for a penal duty. The revenue department has also been advised to replace the ad valorem rates for customs duty on steel products.