During a parliamentary debate on the new finance bill on Tuesday, Indian Finance Minister P Chidambaram revealed the details of the country's new steel import-export policy aimed at increasing domestic steel availability and at bringing down the cost of construction materials.
Accordingly, imports of pig iron, finished steel products, such as HRC and CRC, sponge iron and semi-finished have been exempted from five percent duty, while housing construction products such as TMT bars and structurals have been freed from 14 percent countervailing duty. In addition, the existing five percent import duty on steelmaking materials such as metallurgical coke, ferroalloys and zinc has been abolished.
As regards its new export policy, India has imposed up to 15 percent export duty on certain steel products. In particular, 15 percent export duty has been imposed on specified primary forms and semi-finished products, and also on HRC. In addition, a 10 percent export duty has been applied for specific rolled products, including CRC and CR sheets, and pipes and tubes. Moreover, a five percent duty has been levied on galvanized steel in coils and sheets.
The new import regulations are effective from Tuesday, April 29. Meanwhile, the new export duty rates will be effective only after the new finance bill has been approved by Indian President Pratibha Patil.