Budget 2013: IFAPA recommends hike in export duty on ferro alloys

Indian Ferro Alloy Producers' Association (IFAPA), the
apex body representing manufacturers of Bulk and Noble Ferro Alloys in India proposes
the following recommendations for the union budget 2013-14:

* Export Duty on Ferro
Alloys to be increased to 7.5% – Currently the ferro
alloys industry is operation at around 60% capacity leaving the balance 40%
lying idle. So, it is suggested that basic
customs duty on ferro alloys should be increased to 7.5 % (except Ferro Nickel
which is 100 % imported) from the current 5%. This will ease the working
condition of the Industry to a great extent.

* Import customs duty
on raw material- manganese & chrome ore- to scrapped to nil-  India’s Steel production is increasing every
year & thereby the consumption of Ferro Alloys. However, certain basic raw
materials, i.e., ores viz., Manganese Ore, Chrome Ore, etc., attract an import
customs Duty of 2.5 %. It is therefore requested, that Government may consider
reducing the Customs duty on Manganese Ore, Molybdenum Ore to Zero percent from
the existing 2.5 %, which will help the Industry to a great extent to produce
the required Alloys at a globally competitive rate.

* Listing of FeMn Slag under as free instead of restricted – FeMn slag is generated as a byproduct while
production of FeMn. The ferro alloys industry produces 25% of FeMn & 75% of
SiMn. So, availability of FeMn slag is low. Therefore, it is necessary to allow
free import of FeMn Slag by listing it under customs tariff as free instead of
restricted items.

* Waiving
off customs import duty on anthracite coal- Reductants viz.
anthracite coal, coke, charcoal, non-coking coal and lignite, are vital inputs
for the ferro alloy industry. Currently, the basic customs import duty on
anthracite coal is 5 % with cvd of 6 %. But
it is necessary for government to make available these reductants at
international competitive price. Therefore, It is therefore suggested that
government should waive the customs import duty on anthracite coal and all such
reductants and wherever the cvd is existing, to zero level.