India Hints at Massive Hike in Import Duty on Metallic Scrap

SEATTLE (Scrap Monster): The Director General of Foreign Trade (DGFT) plans significant hike in import duty on metallic scrap. It aims to raise the duty from the current levels of 2.5% to anywhere between 7.5% and 10%. The tremendous hike in import duty is feared to impact operations of around 3,500 recycling units which depend solely on imported scrap.

These recycling units mainly manufacture products from metallic scrap, which are primarily supplied to automotive sector. The metal components produced by these units are also used widely in industrial and household applications.

Kishore Rajpurohit, Director, Metal Recycling Association of India (MRAI), cited the ongoing war between primary and secondary metal producers. Further to this, the primary metal producers had requested the government to implement significant hike in import duty on metallic scrap. The ultimate aim of the primary metal producers is to completely eradicate secondary metal producers, thereby gaining monopoly. However, this will not only lead to significant waste of energy and depletion of natural resources. Studies indicate that recycling of copper and aluminum results in 95% energy savings and 90% less emission of harmful gases.

Meantime, primary metal producers in the country urged the Union government to waive off the import duty on concentrate from its existing 5%.

As per rough estimates, the imports of aluminum scrap surged higher by more than one-fifth from 541,000 tonnes during April-September last financial year to 657,000 tonnes during the corresponding first half of the current fiscal.