A new year gift to Indian coal importers, who are importing coal from Indonesia, as government has removed import duty of 2% on Indonesian coal wef 1 Jan, 2015 under Preferential Trade Agreement (PTA) signed with ASEAN (Association of Southeast Asian Nations) countries in 2009.
In a recent notification uploaded by Ministry of Finance, which notified revised basic customs duty for goods imported from ASEAN countries (Indonesia, Thailand, Malaysia, Singapore, Vietnam and Myanmar), import duty is reduced in every 2 or 3 years provided that the importer proves the satisfaction of Deputy Commissioner of Customs or Assistant Commissioner of Customs.
Indonesia contributes a major portion of total coal imported to India. In FY14, India had imported 168.4 MnT, out of which, 34.8 MnT of coal was imported from Australia. The rest was imported from other countries such as Indonesia (103.1 MnT) and South Africa (20.6 MnT), as per Indian Coal Ministry.
| Chapter | Particulars | Year | Remarks | ||
| 2010 | 2011 | 2015 | |||
| CH-72 | Iron & Steel, Ferro Alloys | 7.4 | 5 | 0 | Negative for steelmakers as imports of Ferro Alloys, Rebar and Wire Rod may increase |
| CH-72 (7204) | Scrap (Ferrous & SS) | 7.4 | 5 | 0 | Positive for Steelmakers as import of Ferrous and SS scrap will become cheaper |
| CH-27 (270111) | Anthracite | 4 | 2 | 0 | Positive for Indian power producers because Indonesia contributes about 60% of total coal imports |
| CH-27 (270112) | Bituminous Coal | 4 | 2 | 0 | |
| CH-27 (270119) | Steam Coal | 4 | 2 | 0 | |
| CH-26 (2601-2617) |
Iron ore, Mn ore, Chrome ore, |
2 | 2 | 0 | Positive for Alloy manufacturers as imports will not attract any duty |
*wef 1 Jan, 2015
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