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The quality of the said item has been facing a huge downfall in the country due to which the steel i

Steel industry may get relief in customs duty on key raw materials?

By Zoviya Shaikh --
Monday, 04 Jan, 2021

The non-availability of these items in good quality and quantity hinders the growth of the steel industry, industry body Confederation of Indian Industry (CII) said in its Budget recommendations for the sector.

The domestic steel industry is seeking for reduction in basic customs duty for theraw materials like anthracite coal, metallurgical coke, coking coal, and graphite electrode in the upcoming Budget plan.

The basic customs import duty on anthracite coal is 2.5 per cent. The availability of the said item in "good quality" is declining in the country and the steel industry may have to become totally dependent on import of these on a regular basis, the body said while suggesting a reduction in import duty to nil.

"Low ash metallurgical coke, HS Code 2704, is a key raw material in steel (making) accounting for almost 46 per cent of the total raw material cost. Reduction in duty will help the domestic steel industry to be cost-competitive," it said.

For metallurgical coke, CII has suggested cutting the import duty to 2.5 per cent, from 5 per cent at present.
In its recommendations, CII has also suggested removing the import duty on coking coal. The duty on import of coking coal at present is 2.5 per cent.

The industry body said the domestic supply of coking coal is not sufficient. Hence, to meet the domestic requirement, it has to be imported. Therefore, the duty should be reduced to nil.

Steel industry may get relief in customs duty on key raw materials?. The non-availability of these items in good quality and quantity hinders the growth of the steel industry, industry body Confederation of Indian Industry (CII) said in its Budget recommendations for the sector.

The domestic steel industry is seeking for reduction in basic customs duty for theraw materials like anthracite coal, metallurgical coke, coking coal, and graphite electrode in the upcoming Budget plan. 
 
The basic customs import duty on anthracite coal is 2.5 per cent. The availability of the said item in "good quality" is declining in the country and the steel industry may have to become totally dependent on import of these on a regular basis, the body said while suggesting a reduction in import duty to nil.

"Low ash metallurgical coke, HS Code 2704, is a key raw material in steel (making) accounting for almost 46 per cent of the total raw material cost. Reduction in duty will help the domestic steel industry to be cost-competitive," it said. 
 
For metallurgical coke, CII has suggested cutting the import duty to 2.5 per cent, from 5 per cent at present. 
In its recommendations, CII has also suggested removing the import duty on coking coal. The duty on import of coking coal at present is 2.5 per cent.

The industry body said the domestic supply of coking coal is not sufficient. Hence, to meet the domestic requirement, it has to be imported. Therefore, the duty should be reduced to nil.