Jiangsu Steel Group Co., Limited

Stainless steel manufacturer OEM & ODM

India re imposes import duty on steel, stainless steel, aluminium and brass scrap

Inquiries : 1 - 2013-9-24 15:31:29

Indian government has made changes in the import duty of various types of scraps.

The Department of Revenue of Ministry of Finance of the Government of India vide notification No 25/ 2013-Customs dated May 8th 2013 announced amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No 12/2012Customs, dated the 17th March, 2012, published in the Gazette of India, Extraordinary, vide number GSR 185(E), dated the 17th March, 2012
1. Against serial number 332, for the entry in column (4), the entry ※2.5%§ shall be substituted
2. Against serial number 333, for the entry in column (4), the entry ※2.5%§ shall be substituted
3. Against serial number 338, for the entry in column (4), the entry ※2.5%§ shall be substituted

Vide another notification No 26/ 2013-Customs dated 8th May 2013, it added that in the notification No 21/2012Customs, dated the 17th March 2012, in the Table, serial number 80 and the entries relating thereto shall be omitted so as to withdraw exemption of Special Additional Duty of Customs (SAD)

What does it mean?
1. Column 4 in the table of notification No 21/2012Customs, dated the 17th March 2012 outlined the % of custom duty
2. Serial number correspond to ※Chapter or Heading or sub heading or tariff item§ meaning the ※Description of goods§

Sl 每 332
Chapter 每 7204
Description - Melting scrap of iron or steel (other than stainless steel)
Basic Duty 每 Nil (Now 2.5%)

Sl 每 333
Chapter - 7204 21
Description - Scrap of stainless steel, for the purpose of melting
Basic Duty 每 Nil (Now 2.5%)

Sl 每 338
Chapter 每 7602
Description - Aluminium scrap
Basic Duty 每 Nil (Now 2.5%)

Sl 每 80
Chapter - 7404 00 29
Description - Brass scrap
SAD 每 Nil (Now standard rate of 4%)

The notifications do not give the reasons for making the changes

The re imposition of 2.5% import duty will be a big blow to scrap users in India. It will also create a serious disruption in the supply chain as the traders or users whose cargoes are already contracted or on high seas would have to bear this extra burden, when the markets for finished goods are already under severe pressure due to sluggish demand