Geneva, Dec 9 (IANS): In a major relief to the steel industry, the World Trade Organisation (WTO) has ruled against the US imposing high duty on imports of certain steel products from India.

In a report issued Monday, the WTO's appellate body has ruled that duty levied by the US on Indian steel products is inconsistent with the multilateral body's Agreement on Subsidies and Countervailing Measures (SCM).

"The Appellate Body finds that the US Department of Commerce's (DOC) use of such prices (to determine duty) is inconsistent with Article 14(d) of the SCM Agreement," the report said.

It reversed the WTO dispute settlement panel's report rejecting India's claim that the USDOC's use of "as delivered" prices from Australia and Brazil in assessing whether the National Mineral Development Corp (NMDC) provided iron ore for less than adequate remuneration is inconsistent with Article 14(d) of the SCM agreement.

The body also recommended that the US should modify its norms and bring them in line with the WTO’s agreement.

"The Appellate Body recommends that the United States bring its measures found in this report, and in the panel report as modified by this report, to be inconsistent with its obligations under the SCM Agreement into conformity with that agreement," it added.

However, it also rejected some of the findings of the panel which were in India’s favour.

The US had imposed higher duties on steel imports from India on the grounds that some domestic companies were being indirectly subsidised by the Indian government.

In this regard, the body said it "reverses the panel's report, rejecting India's claims that the USDOC's examination of new subsidy allegations in administrative reviews related to the imports at issue is inconsistent with the SCM agreement."

"The Apellate Body finds that the USDOC's determination that the NMDC is a public body is inconsistent with Article 1.1(a)(1) of the SCM agreement," it added.