Govt imposes import duty on steel, aluminium, brass scraps.

NEW DELHI: The government has imposed 2.5 per cent import duty on various types of scraps - melting steel, stainless steel and aluminium scraps, and has withdrawn exemption of special additional customs duty on brass scrap.

The measures were taken through two different notifications issued on Wednesday by the Finance Ministry. It did not give reasons for making changes except saying that it is in public interest.

"In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments...," said the notification, imposing 2.5 per cent import duty on steel and aluminium scraps.

Since 2003, import duty on melting steel scrap was nil, while on stainless steel scrap, the duty was reduced to zero in the Budget of 2011.

Besides, withdrawal of exemption of special additional customs duty (SAD) on brass scrap means that importers of brass scrap will now have to pay 4 per cent SAD on imports.

According to industry data, India imports about 7 million tonnes (MT) of melting steel scrap and about 1 or 2 MT of stainless steel scrap. However, no such data could be secured for aluminium or brass scrap as it is scattered and belong to medium and small scale industries.

The scrap is used as raw material largely by medium and small scale industries. As per the industry estimates, secondary steel producers account for about 40 per cent of India's total steel production at about 32 million tonnes.


Soruce : economictimes.indiatimes.com