ISA seeks increase in customs duty on steel

ISA seeks increase in customs duty on steel

Indian Steel Alliance (ISA), on behalf of major Indian steel producer, asked the Steel Ministry to increase customs duty on steel to 15 percent from the current 5 percent. The ISA indicated that a duty hike is necessary since steel imports increased by nearly 100 percent in April-November 2005-06 to 2.42 million tons. Moreover, the ISA claimed that domestic producers are suffering from cheaper imports, and that the low import duty is an obstacle for the producers to hike their prices. According to industry sources, the Steel Ministry's proposal may not find favor with the Finance Ministry, which had earlier decided that imports were not causing ant damage to the local industry. Moreover, the Commerce Ministry had also rejected a request by the industry to institute antidumping proceedings against steel products imported from the CIS.