Reduction in import duties for steel products cheers steel industry and importers
1. April 2021The Indian Ministry of Finance announced in February that it would reduce customs duties on imports of certain steel products from 12.5 percent to 7.5 percent, and steel scrap will be completely exempt from customs duties on imports. For steel scrap, the tax reduction will be in effect until March 31, 2022; the Ministry of Finance did not specify a fixed date for the other categories. The products included in the duty reduction are semi-finished products, flat and rod steels made of pure metals, alloys and stainless steel. In addition, to support steel recycling companies, the customs duties on copper scrap will be reduced from 5 percent to 2.5 percent.
The Ministry of Finance cited the sharp rise in steel prices on the Indian market as the reason for the reduction in customs duties. In some cases, price increases of up to 50 percent were observed. To further ease the situation, previous regulations such as punitive and countervailing duties on some products and countries of origin such as China were also temporarily suspended until Sept. 30, 2021. The products affected for the suspension of punitive duties are rod steel from China, HSS steel from Brazil, China and Germany, and flat and coated steel from China, Vietnam and Korea. Countervailing duties have been temporarily suspended on rolled stainless steel products from China and flat stainless steel from Indonesia.
The Indian steel industry and importers were pleased with the news from the Finance Ministry. Chief Executive Officer of Usha International, a manufacturer of home appliances, Dinesh Chhabra said, “The temporary suspension of duties on steel and copper scrap until March 2022 will help us keep prices stable for end users and achieve good sales in the current year.” For importers of steel products, the reduction in tariffs will also have a positive impact. It should be noted, however, that steel products need BIS-ISI certification to be imported into India. BIS stands for the Bureau of Indian Standards and is India’s national certification body under the umbrella of the Indian Ministry of Consumer Affairs, Food & Public Distribution. Product certification under the Bureau of Indian Standards (BIS) has been in existence since July 2013 and is intended to be an assurance of quality, safety and reliability to third parties. ISI is the mark or seal on the respective product. The ISI mark was introduced by the BIS for industrial products in 1955. MPR International GmbH – India Certification will be pleased to assist you with BIS-ISI certification and is also available to answer any questions you may have.
Since 2012, the BIS has been gradually expanding the certification catalog and continuously adding additional goods. BIS certification mandatory for many electronic products for industrial and consumer uses. Factory inspections are also required for some products.
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