New Delhi, Nov 19 (Mayank Nigam) The government on Saturday withdrew export duty on steel. ‘The Central Government has restored the status quo as was prevailing prior to 22nd May, 2022, and withdrawn the export duty on iron ores lumps and fines below 58% Fe content, iron ore pellets and the specified steel products including pig iron,’ a statement from the Finance Ministry said. The import duty concessions on Anthracite or PCI coal, coking coal, coke and semi coke and ferronickel have also been withdrawn, the statement said.
In May, 2022, in the wake of a sharp and steady rise in prices of steel and in order to augment the availability both of finished steel as well as raw materials or intermediates required for steel manufacture, the government had taken several tariff measures earlier this year. With effect from 22nd May, 2022, export duty on iron ore lumps with more than 58% Fe content was raised from 30% to 50% ad valorem, export duty of 50% was imposed on iron ore with Fe content below 58 per cent, export duty of 45% was imposed on iron ore pellets, export duty of 15% ad valorem was imposed on different forms of alloy and non-alloy steel and import duty exemptions were given to Anthracite / PCI coal, coking coal, coke and semi coke and ferronickel. Meanwhile, Engineering Export Promotion Council (EEPC) India welcomed the decision and said the removal of export duty on steel products will boost engineering exports.
‘We welcome the government’s decision to withdraw the 15 per cent export duty imposed on iron ore and steel products as it will boost engineering goods exports and contain the downward trend seen in steel exports,’ a statement from EEPC India said. The domestic prices, however, should not increase further for the benefit of MSME users, it said. EEPC India had urged the government to reverse its May 2022 decision to impose export duty on steel and alloy steel items considering its adverse impact on the engineering goods sector. In the last few months, volume data had also indicated a significant year-on-year decline in exports of major stainless steel and alloy steel items which were manufactured by export-oriented MSMEs. During October, engineering exports fell 21 per cent primarily due to decline in shipments of steel and its products.