IFAPA recommends increase in custom duty on ferro alloys

Thursday, February 24,

The Indian Ferro Alloy Producers’ Association (IFAPA) that promotes and protects the interests, common to the Ferro Alloy Industry has given various recommendations to the Finance Minister for the Budget 2011-2012.* 

* List Ferro Manganese slug under free item instead of restricted item under heading 

It is necessary to allow free import of Ferro Manganese for production of Silico Manganese, to cater to the domestic Steel Industry, and continue to meet the export market. Therefore, it is suggested that Ferro Manganese Slag be listed as Free instead of restricted items. 

* Increase the custom duty on ferro alloys under heading Ferro Alloys to 7.5% except Ferro Nickel 

Since Ferro Alloys also come under the same Chapter 72 of Iron and Steel, it is suggested that the Basic Customs Duty on Ferro Alloys be increased to 7.5 % (except Ferro Nickel which is 100 % imported). This will ease the working condition of the Industry to a great extent. 

If Government is not able to increase the Duty, for any reason, it is suggested that Raw Materials i.e., Ores for manufacture of Ferro Alloys, may be brought down to 0 % from existing 2 %. 

* Waive custom duty on raw materials i.e Ores for production of Ferro Alloys 

The Customs Duty on the Ores viz., Manganese Ore, Chrome Ore, etc are basic raw materials and should be brought down to Zero (0 %), as these are not easily available in the country. The only high grade Manganese Ore and Chrome Ore deposits available in India are with Manganese Ore (India) Ltd. (MOIL) and Orissa Mining Corporation Ltd. (OMC) respectively, who act as price monopolists.