India’s Directorate General of Trade Remedies (DGTR) has recommended imposition of customs duty on imports of ferromolybdenum used in steel, nickel and cobalt alloys, imported from South Korea under the free trade agreement between the countries, government officials said on Tuesday, July 6.
The sources said that the recommendation for levy of customs duty, under the duty-free import regime within the scope of the FTA, has been forwarded to the ministry of finance for the issuing of the official notification to give effect to the levy.
The DGTR in its recommendation following its investigation into the rise in duty-free imports of ferromolybdenum from South Korea noted that the imposition of customs duty is “considered appropriate” under the India-Korea Comprehensive Economic Partnership Agreement (Bi-lateral Safeguard Measures) Rules 2017.
The duty recommendation was 100 percent in the first year, to the level of the Most Favoured Nation (MFN) applied rate of customs duty. In the second year, the rate would be 75 percent to the level of the MFN applied rate.