Export Duty on Iron Ore Pellets Hiked to 5% from Nil

[Customs Notification No. 03 dated 27^th January 2014]

Considering the domestic requirement of iron ore pellets, the Government has decided to impose an export duty of 5% on iron ore pellets. CBEC issued Notification No.3/2014-Customs, dated 27.01.2014 in this regard.

Iron ore fines and lumps are leviable to an export duty of 30%. Iron ore pellets are however exempt from export duty. In 2012-13, exports of iron ore pellets were negligible. However, in April-November 2013, exports of iron ore pellets have risen sharply, causing an apprehension about shortage of iron ore in the country. Iron ore is a critical raw material required for production of steel.

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.27/2011-Customs, dated the 1^st March, 2011, published in the Gazette of India, Extraordinary, vide number G.S.R.153 (E),dated the 1^st March, 2011,namely:-

In the said notification, in the Table, against serial number 23, in column (4), for the entry “Nil”, the entry “5%” shall be substituted.

[F.No.354/290/2011-TRU]