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Steel News September 12, 2019 12:30:58 PM

DGFT Steel Import Restrictions to Hit Engineering Exports

Paul Ploumis
ScrapMonster Author
The Engineering Export Promotion Council (EEPC) said that the latest round of restrictions on steel products imports into the country is likely to hit engineering goods exporters. It must be noted that steel is the primary raw material for engineering goods manufacturing companies.
DGFT Steel Import Restrictions to Hit Engineering Exports

SEATTLE (Scrap Monster): The Engineering Export Promotion Council (EEPC) said that the latest round of restrictions on steel products imports into the country is likely to hit engineering goods exporters. It must be noted that steel is the primary raw material for engineering goods manufacturing companies.

In a letter to Piyush Goyal, the Union Minister for Commerce and Industry, EEPC Chairman Ravi Sehgal pointed out that the notification dated September 5 by the Directorate General of Foreign Trade (DGFT) makes registration of import of most of the steel products compulsory. Accordingly, application for registration can be made not earlier than 60th day and not later than 15th day from the expected date of arrival of the consignment. The notification also specifies specific fee for such registrations.

The EEPC believes that compulsory registration mechanism will help in monitoring steel product inflow into the country. However, the fee structure is likely to further add to the input cost of the exporters, who are already battling global economic slowdown. There is no rationale behind the move to impose fee, EEPC noted. As per data, engineering exports have declined by nearly 2% in April-July '19, as compared with the previous year.

The export market faces several hurdles including export quota reduction by the European Union and withdrawal of Generalized System of Preferences by the U.S. Under these circumstances, any further rise in prices or restrictions could severely harm the engineering goods exports sector, the letter said.