Union budget imposes 2.5% basic import duty on Met Coke & Coking Coal. Duties rationalized for all types of imported Non- Coking Coal.
The annual budget of the new government came as a surprise for many, as it introduced an import duty of 2.5% on Met Coke and Coking Coal. The duty on anthracite, bituminous and steam Coal was raised to 2.5% from previous levels of 2%.
“Ministry proposes to rationalize the duty structure on all non-agglomerated Coal at 2.5% basic customs duty and 2% CVD,” commented by the Finance Minister in his speech.
|
Grade |
Basic Custom Duty |
CVD |
||
|
|
FY14 |
FY15 |
FY14 |
FY15 |
|
Coking Coal |
Nil |
2.5% |
6% |
2% |
|
Steam Coal |
2% |
2.5% |
2% |
2% |
|
Bituminous Coal |
2% |
2.5% |
2% |
2% |
|
Met Coke |
Nil |
2.5% |
2% |
2% |
India’s total import of Met Coke increased by 44.8 % in FY14 as compared to previous year. Lower prices of imported Coke were one of the major reasons which helped the imports to rise. In FY13, the country had imported around 2.9 MnT of Met Coke.
Met Coke is a processed form of Metallurgical Coal, majorly used by Steel manufacturers, Ferro Alloy producers, Foundries and Soda ash plants . India imported over 4.2 MnT of Met Coke in FY14, which was shipped from different international destinations. The import of Met Coke didn’t attract an import duty earlier.
Qty- MT
Looking at current prices, cost of importing Met Coke or Coking Coal will go up by INR 200-300/MT.
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