Indian government has reduced export tax on Iron ore exported by NMDC (National Mineral Development Corporation) to Japanese and Korean mill under long term agreement by 20%. Current duty applicable for NMDC will be 10% for high grade shipments made under long term agreement.
Indian government recently approved the renewal of agreement for supplying up to 16.5 million tonnes (MT) of high grade iron ore to steel plants in Japan and South Korea over three years till March 2018.
The quantities covered under the agreement will be in the range of 3.8 to 5.5 million tonnes per year and will be supplied from the Bailadila mines of the NMDC. India has been supplying high grade iron ore to Japan and South Korea under Long Term Agreements for the last four to five decades
The contract will be executed by the Metals and Minerals Trading Corporation of India Limited (MMTC).
Notification: http://www.cbec.gov.in/htdocs-cbec/customs/cs-act/notifications/notfns-2015/cs-tarr2015/cs50-2015
Key Points
1. Export duty for high grade Iron ore is 30% , where as less than 58% Fe % is 10%
2. NMDC was largest exporter in FY15
3. No exports have been recorded by NMDC in FY16 over falling iron ore prices in global market
4. Recently Indian government had reduced freight rates on export of Iron ore significantly
Leave a Reply