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Metal Recycling News January 17, 2020 01:30:45 PM

MRAI Calls for Removal of Customs Duty on Scrap Metal Imports

Paul Ploumis
ScrapMonster Author
The suggestion was made in its recommendations to the Finance Ministry on the upcoming budget.

MRAI Calls for Removal of Customs Duty on Scrap Metal Imports

SEATTLE (Scrap Monster):  The Material Recycling Association of India (MRAI) has urged the Indian government to remove duty on scrap metal imports into the country. The suggestion was made in its recommendations to the Finance Ministry on the upcoming budget.

The Association noted that the country’s secondary metals sector is primarily dependent on imported scrap, due to prevailing low supply situation in the country. For many years, India has been a net importer of scrap metal, it noted. Nearly 65% of its total scrap requirement is met through imports. The customs duty on imported scrap needs to be removed completely, in order to ensure sufficient availability of scrap through imports. MRAI recommended to reduce the customs duty from the current rate of 2.5%-5% to 0%.

ALSO READ: MRAI Raises Opposition to Proposed Hike in Aluminum Import Duty

Further, MRAI urged the government to consider metal recycling as a priority sector. The increased use of scrap metal in manufacturing process could help to conserve precious natural resources, thereby reducing harmful carbon emissions. Apart from ensuring sustainability benefits, the metal recycling in the country employs nearly 10 million people in the country. The removal of customs duty will promote usage of scrap metal, MRAI noted.

MRAI is the industry body that represents over 1,200 ferrous and non-ferrous metal industry stakeholders.

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