Demand for Indian pencil ingot has suddenly increased in Bangladesh, according to market participants. This is a result of recent ( in budget 2016 ) increment in duty structure by Bangladeshi government on import of billet, which comes under HS Code 7207. However, mild steel ingot under HS code 720610 is immune from change in duty structure.
This means, any imports of MS ingot from India to Bangladesh attracts zero import duty under SAFTA agreement.
It is to be noted that duty had been increased from USD 95/MT to around USD 150/MT for billet imports in the budget.
“There is a sudden spike in demand for pencil ingots from India. As per interpretation, ingot doesn’t not attract any import duty, whereas billet imports attract a duty of USD 150/MT”, mentioned a trader in Kolkata/Durgapur.
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