Government cuts duty on junk ships

Government cuts duty on junk ships

According to recent news in the market, the India Finance Ministry on Friday August 20 announced that it has cut the customs duty on ships imported for demolition in order to improve the domestic supply of cheaper steel. The customs duty on ships imported for demolition, previously at 15%, has been reduced to 5% by the Indian Finance Ministry. As re-rollable scrap is an output of shipbreaking, the Finance Ministry expects that reducing the cost of junk ship imports will make scrap cheaper for steel mills. In 2003-2004, China acquired the top position on ship breaking capacity from India; however, Bangladesh is set to take the number one position this year, pushing China down to second position and India to third place.