The Indian government announced the withdrawal on Friday night, effective Saturday. This year in May, duty was imposed.
According to a statement from the Indian Finance Ministry, export duties would not apply to lumps and fines of iron ore that have "less than 58 percent Fe." The rate of duty will be 30 percent for lumps and fines of iron ore that contain more than "58 percent Fe." Iron ore pellet exports will not be subject to any export taxes. Similar to this, there will be NO export taxes applied on pig iron and steel products (HS 7201, 7208, 7209, 7210, 7213, 7214, 7219, 7222 & 7227).
The Finance Ministry stated in a statement that the "present steps would provide the domestic steel industry a fillip and increase exports."
Ferronickel, anthracite/PCI, and coking coal will all be subject to a 2.5 percent import charge, whereas coke and semi-coke will be subject to a 5 percent tariff. In May, they received an exemption.
As a result of weaker global demand and higher prices compared to rivals, India's steel exports fell by 66 percent in October, the most for this fiscal year, to 360,000 tons. According to data from the Steel Ministry, exports in October 2021 totaled 1.05 million tons.
The repeal of the tax on stainless steel and the reduction of the export tariff on iron ore, according to the Indian Steel Association, "would go a long way in restoring India's trade balance."
According to Alok Sahay, secretary general of the Indian Steel Association, "the decision to immediately withdraw the export duty once the inflation numbers came to a reasonable level shows the concern of the Government of India towards the common man and the industry."
Dilip Oommen, CEO of ArcelorMittal Nippon Steel India and President of the Indian Steel Association, as well as Executive Vice President of ArcelorMittal, believes that this will re-energize and further motivate the industry to move forward with complete confidence in order to steer the steel sector toward an inclusive growth path.
The materials and information on this article have been prepared or assembled by Viet Nam Steel and are intended for informational purposes only