FICCI has actually prompted the federal government to decrease the basic customizeds duty on ferronickel to zeroNew Delhi: With the Union Spending plan simply days away, industry body FICCI has actually advised the federal government to decrease the standard custom-mades responsibility (BCD) on ferronickel to absolutely no and levy a higher duty of 12.5 per cent on the import of stainless-steel flat products.Finance Minister Nirmala Sitharaman is set up to present the budget plan for 2022-23 on February 1, 2022.
Amongst a multitude of suggestions, the Federation of Indian Chambers of Commerce and Market (FICCI) has asked for the government to continue with no task on stainless-steel scrap after March 31, 2022.
At present, while the BCD on ferronickel is 2.5 percent, the same on stainless steel flat items is 7.5 per cent.
On stainless steel scrap, absolutely no customs duty applies approximately March 31, 2022.
FICCI said it is the most important raw material utilized in stainless steel making.
The stainless steel market meets the bulk of its nickel requirements through ferronickel and stainless-steel scrap routes, as pure nickel is very expensive.As ferronickel is not readily available in the nation due to shortage of nickel ore, stainless-steel manufacturers have to import it from nations like Japan, South Korea and Greece.
Besides, customizeds responsibility is not appropriate on ferronickel stemming from Indonesia and Japan due to India-ASEAN FTA and India-Japan CEPA.Seeking imposition of greater duty on stainless steel flat products, the body said that stainless steel flat items' import has actually been rising over the last couple of months.
From a month-to-month average of 34,105 tonnes in 2020-21, imports grew by a frustrating 127 percent to 77,337 tonnes in July 2021.
These high imports are hurting the domestic industry, which has the capacity and ability to satisfy the entire domestic demand.There is no need to depend upon stainless-steel imports, as the domestic industry can produce all the grades and densities required by the end-users, it said.The domestic industry has actually a set up capability of 5.04 million tonnes (MT), with present capacity utilisation at 78 per cent, there is enough scope for increasing the capacity utilisation to meet the whole domestic demand, FICCI noted.It further stated no customs task on stainless steel scrap has actually assisted the industry in getting raw material for stainless steel production at competitive rates, at a time when the global stainless-steel scrap costs have shot up by 25-40 per cent.The market depends on scrap imports due to less schedule in the country.
The majority of the stainless-steel scrap requirement is met through imports due to the fact that of the low rate of stainless-steel scrap generation domestically.