India imposes import duty on scrap metal imports amid rife protests

Metal Recycling News  |  2013-05-13 08:06:45   |   By

The Indian government has imposed new import duties on melting and stainless steel scraps amid strong opposition from within the industry

MUMBAI (Scrap Monster) : The Indian government has imposed new import duties on melting and stainless steel scraps amid strong opposition from within the industry.

According to the notifications released by the Indian Finance Ministry, all imports of scrap iron, steel and aluminum will have an import duty of 2.5% effective immediately. Also the exemption of special additional customs duty on brass scrap imports has been withdrawn. As a result, the imports of brass scrap will attract a 4% duty.

The government is targeting a revenue collection of INR 500 Crores by imposition of duties on scrap imports. The government says the decision to impose import duty was in public interest.

However, the industry reacted sharply against the decision and demanded that the decision be revoked immediately to the better interests of the domestic industry. According to industry sources, the imposition of duty would result in a hike of at least $10 to $15 per tonne landing costs in the case of melting scrap. For stainless steel, the impact would be even more. The move is expected to tighten the scrap imports.

The decision may force the use of more sponge iron. There are allegations that by taking such a decision, the government has favored the sponge iron manufacturers in the country.

The Metal Recycling Association of India (MRAI) calls the decision shocking and disappointing. The scrap exporting countries have also raised strong protests against the government’s decision.