Recent budget brought no cheer for Indian steel industry, which are struggling with cheaper imports from Russia and China.
There were several interpretations on import duty announced by finance ministry. On one hand, Finance Minister mentioned in his budget speech that effective rate of duty remains unchanged, on the other, Central Board of Excise & Customs (CBEC) issued an amendment (notification no. 10-2015), which interested column 329A that says all goods under 72 will be charged at 10%.
Speaking to several custom officers & importers, it was assessed that there is no hike in import duty, though the government has raised peak rate duty to 15%, which gives it a power to charge at that rate, if import continues to grow.
Peak tariff rate of Basic Customs Duty on Iron & Steel (Chapter 72) and articles of Iron or Steel (Chapter 73) is increased from 10% to 15%. However, the existing effective rate of BCD on these goods is retained.
Customs officials clarify that the existing concessional rates of Basic Customs Duty in respect of goods falling under Chapters 72 & 73 under S.Nos. 330, 331, 332, 333 & 334 and other similar entries of notification No.12/2012-Customs dated 17 Mar, 2012 will continue.
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