Industry Updates 22th June 2012

 

INDUSTRY UPDATES

22.06.2012


STEEL, METALS AND MINING


Indian importer riding high on Boron added steel to avoid custom duty
Indian Express reported that leading domestic steel makers have alleged that overseas steel producers, mainly from China, have effectively side stepped paying the enhanced import duty of 7.5% by taking advantage of an anomaly in the Customs Act and selling their produce in India as ‘alloy steel’.

In a meeting with steel secretary Mr DRS Chaudhary on May 30, the Indian steel firms have said that in view of the increase in the import duty on non alloy steel from 5% to 7.5% in the Finance Bill 2012-13, the Chinese steel exporters have started bypassing the import duty classification by taking advantage of an anomaly in the duty structure.

Under Chapter 72 of the Customs Act, addition of a minimum of 0.0008% boron to steel changes the classification of this metal from ‘non alloy’ to ‘alloy steel’, which is what the Chinese companies are resorting to. They are effectively adding the minimal quantity of boron in their produce and shipping them to India as ‘alloy steel’ and are thereby avoiding paying the increased import duty.