Demand For Customs Duty Relief On Key Raw Materials

Demand for customs duty relief on key raw materials of steel sector: Budget Expectations 2021.

Prior to the budget, the domestic steel industry’s demand is cut in basic customs duty on raw materials such as anthracite coal, metallurgical coke, coking coal, and graphite electrode in this budget.

In the recommendations made for the forthcoming budget for the steel sector.

The Board of Industries CII said that the steel industry is not growing due to better quality and adequate availability of these items in quantity.

The industry has suggested reducing the existing basic customs duty on anthracite coal to 2.5 percent to zero.

He said that the availability of these products in good quality in the country is decreasing.

In such a situation, the steel industry may have to depend on imports of these commodities on a regular basis.

CII suggested reducing import duty for metallurgical coke to 2.5 percent from the current 5 percent.

The industry body said, ‘Low ash metallurgical coke (HS Code 2704) is the main raw material for steel making.

It accounts for 46 percent of the total cost of raw materials. The cut in duty will help the domestic steel industry to be cost competitive.

In its recommendations, CII has also suggested reducing import duty on coking coal. Currently the import duty on coking coal is 2.5 percent.

The Board of Industries said that domestic supply of coking coal is not sufficient. Therefore, to meet domestic requirements, it has to be imported.

The fee on this should be reduced to zero.

According to CII, graphite electrodes are also used in steel making.

Domestic steel producing companies are obliged to import graphite electrodes as almost 60 percent of the production in the country is exported.

This is lacking in the domestic market. “The industry body said,” Higher fees increase the cost of companies. In such a situation, it needs to be brought down to zero levels from the current 7.5 percent. “

It is worth noting that recently, Finance Minister Nirmala Sitharaman had said that the government is getting all kinds of suggestions from various sectors regarding the upcoming budget.

She said that for the budget of 2021-22, there will be a lot of inclusiveness in it.