Export Duty on Steel Withdrawn

·         Restored the status quo as was prevailing prior to 22nd May,2022 and withdrawn the export duty on iron ores lumps & Fines below 58% Fe content, iron ore pellets and the specified steel products including pig iron

·         Import duty concessions on Anthracite / PCI coal, coking coal, coke & semi coke and ferronickel have also been withdrawn

·         Steel and Iron Ore Exports will Rise but Coal will fall, Exporters will gain but those who cater to domestic market will lose

The Central Government has restored the status quo as was prevailing prior to 22nd May,2022 and withdrawn the export duty on iron ores lumps & Fines below 58% Fe content, iron ore pellets and the specified steel products including pig iron. The import duty concessions on Anthracite / PCI coal, coking coal, coke & semi coke and ferronickel have also been withdrawn.

The measures are effective from 19 Nov, 2022,-

·         Exports of iron ore lumps and fines < 58% Fe will attract nil export duty.

·         Exports of iron ore lumps and fines > 58% Fe will attract lower export duty of 30%.

·         Exports of iron ore pellets will attract nil export duty.

·         Exports of pig iron and steel products classified under HS 7201, 7208, 7209,7210,7213, 7214, 7219, 7222 & 7227 will attract nil export duty

·         Anthracite/PCI & coking coal and ferronickel will attract import duty of 2.5%.

·         Coke and Semi coke will attract 5% import duty.

In May, 2022, in the wake of a sharp and steady rise in prices of steel and in order to augment the availability both of finished steel as well as raw materials or intermediates required for steel manufacture, the Government took several tariff measures earlier this year. With effect from 22nd May, 2022, export duty on iron ore lumps with more than 58% Fe content was raised from 30% to 50% ad valorem; export duty of 50% was imposed on iron ore with Fe content below 58%; export duty of 45% was imposed on iron ore pellets; export duty of 15% ad valorem was imposed on different forms of alloy and non-alloy steel including pig iron (HS 7201,7208,7209, 7210, 7213, 7214, 7219, 7222, 7227) and import duty exemptions were given to Anthracite / PCI coal, coking coal, coke & semi coke and ferronickel.

The current measures will provide a fillip to the domestic steel industry and boost exports.

 

[Customs Notification No. 58/2022 dated 18th November, 2022]

Seeks to amend Notification No. 27/2011- Customs, dated the 1st March, 2011 in order to withdrawal export duty on iron ore & steel products.

G.S.R. (E).- 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 1st March, 2011, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 153(E), dated the 1st March, 2011, namely :-

In the said notification, in the Table,

(i)    after S. No. 20 and the entries relating thereto, the following S. No. and entries shall be inserted, namely: -

(1)

(2)

(3)

(4)

“20A.

2601 11 21, 2601 11 22, 2601 11 41, 2601 11 42

All Goods

Nil

20C

2601 11

All Goods, other than goods mentioned in S.No. 20A

30%

20D

2601 12

All Goods, other than iron ore pellets

30%”;

(ii)   against S. No. 23, in column (4), for the entry “45%”, the entry “Nil” shall be substituted;

(iii)   against S. No. 48, in column (4), for the entry “15%”, the entry “Nil” shall be substituted;

(iv)  against S. No. 54, in column (4), for the entry “15%”, the entry “Nil” shall be substituted;

(v)   against S. No. 55, in column (4), for the entry “15%”, the entry “Nil” shall be substituted;

(vi) against S. No. 56, in column (4), for the entry “15%”, the entry “Nil” shall be substituted;

(vii)  against S. No. 57, in column (4), for the entry “15%”, the entry “Nil” shall be substituted;

(viii) against S. No. 58, in column (4), for the entry “15%”, the entry “Nil” shall be substituted;

(ix) after S. No. 61 and the entries relating thereto, the following S. Nos. and entries shall be inserted, namely: -

(1)

(2)

(3)

(4)

“61A.

7219

Flat-rolled products of stainless steel, of a width of 600 mm or more

Nil

61B.

7222

Other bars and rods of stainless steel; angles, shapes and sections of stainless steel

Nil

61C.

7227

Bars and rods, hot-rolled, in irregularly wound coils, of other alloy steel

Nil”;

2. This notification shall come into force on the 19th day of November, 2022.

[F. No. 354/12/2022-TRU]

Amended entries of Ntfn 27/2011 dated 1st March 2011 as below:

SNo.

HS Code

Item Description

New Duty

Old Duty

23

26011210

Iron ore pellets

Nil

45%

48

7201

Pig iron and spiegeleisen in pig, block or other primary forms

Nil

15%

54

7208

Flat rolled Products of Iron or non-alloy steel, hot-rolled, not clad, plated or coated

Nil

15%

55

7209

Flat rolled products of iron or non-alloy steel, cold-rolled (cold reduced), not clad, plated or coated

Nil

15%

56

7210

Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, clad, plated or coated

Nil

15%

57

7213

Bars and rods, hot-rolled, in irregularly wound coils, of iron or non-alloy steel

Nil

15%

58

7214

Other bars and rods of iron or non-alloy steel, not further worked than forged, hot-rolled, hot-drawn or hot-extruded, but including those twisted after rolling

Nil

15%