India Mulls Cut in Import Duty on Steel

SEATTLE (Scrap Monster): The Indian government announced plans to further cut import duties on various steel items to make them to zero or near-zero levels. The move aims to bring some sort of relief to micro, small and medium enterprises (MSMEs), who have been reeling under the pressure of rising raw material costs amidst Covid-19 crisis related setbacks.

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According to government sources, decision has been already taken to conduct a review on import duties on steel items, so as to reduce them or withdraw them completely. In the most recent budget, the Finance Ministry had decided to revoke the anti-dumping duty (ADD) and countervailing duty (CVD) on certain steel products. Also, customs duty was reduced to 7.5%. In addition, the import duty on steel scrap was made nil.

As per reports, the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce is waiting for a formal nod from the Ministry of Finance to announce the duty cut. A final decision, as to whether to slash the duty to 2.5% or to completely withdraw them, needs to be taken.

The import duty cut, if implemented, is expected to bring down domestic steel prices in the country. However, the industry expressed fears that the move may prove detrimental to domestic steelmakers, as the duty cut could boost imports of cheap and substandard steel.