Centre withdraws export duty on steel

With this, the export duty on iron ores lumps and Fines below 58 percent Fe content, iron ore pellets, and the specified steel products including pig iron is removed.

The import duty concessions on Anthracite / PCI coal, coking coal, coke and semi coke, and ferronickel have also been withdrawn.

The new orders will be effective from Saturday, Nov 19, 2022.

As per the government order:

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

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

·      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 an import duty of 2.5 percent.

·      Coke and Semi coke will attract a 5 percent import duty.

In May 2022, the government took several tariff measures in the wake of a sharp and steady rise in the prices of steel.

The steps were also directed to augment the availability of finished steel as well as raw materials or intermediates required for steel manufacture.

With effect from May 22, 2022, export duty on iron ore lumps with more than 58 percent Fe content was raised from 30 percent to 50 percent ad valorem.

An export duty of 50 percent was imposed on iron ore with Fe content below 58 percent and an export duty of 45 percent was imposed on iron ore pellets.

Further, at the time, the export duty of 15 percent 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 and semi-coke, and ferronickel.

“The current measures will provide a fillip to the domestic steel industry and boost exports,” the ministry said.