In any case, the fundamental traditions obligation was upgraded from 2.5 percent to 5 percent with impact from March 1, 2015. Moreover, against dumping obligation was likewise forced on its imports with impact from November 25, 2016.
New Delhi: The domestic steel industry is seeking a reduction in basic customs duty on key raw materials such as coking coal, pet coke, limestone and dolomite in the upcoming Budget. Finance Minister Nirmala Sitharaman is scheduled to present the Budget for the financial year 2020-21 on February 1.
"Anthracite coal, coking coal, coke, limestone, dolomite are indispensable contributions for the steel business. The accessibility of these things in great quality is declining in the nation and the business needs to rely upon imports on standard premise," industry body Ficci said in its Budget suggestions for Indian steel division.
The essential traditions import obligation on anthracite coal is 2.5 percent. Since the Ferro compound industry assumes a fundamental job in steel fabricating, it is important to make accessible these reductants at a worldwide serious cost to make Indian steel processes progressively serious, it said while suggesting that traditions obligation on anthracite coal be decreased to zero from 2.5 percent.
Limestone imports have been increasing consistently as the reserves of SMS and BF grade limestone within the country are scattered and there is a capacity limitation of the existing limestone mines in various states.
"In 2014-15 Budget, the exemption was granted to Limestone (CTH 2521) and Dolomite (CTH 2518) for metallurgical use conforming to IS: 10345-2004 (Limestone) and IS: 10346-2004 (Dolomite). While there is no apparent issue in this regard but now all samples which were hitherto not being tested are now being sent to Bengaluru laboratories for testing due to which finalization of provisional assessments are getting unduly delayed," it said.
"This substantially increases transaction costs and litigation defeating the purpose of benefit of concessional duty. So, it is requested to reduce the customs duty on all grades of limestone and dolomite from 2.5 percent to nil in line with similar imports from ASEAN countries, without any technical condition," it added.
Exemption of import duty on ferrous and stainless steel scrap, imposing 30 percent export duty on graphite electrodes, increase in basic customs duty for certain steel products, reduction of import duty on moly oxide are some of the other recommendations made by Ficci to the Finance Ministry.