Indian prime minister Manmohan Singh will review the
countrys scrap metal import duties, according to the
Metal Recycling Association of India (MRAI).
MRAI officials met
Singh Aug. 13 to lobby for the removal of Indias
additional duty on scrap imports. The MRAI has also called for
corrections to the inverted duty structure in lieu of
free-trade agreements with trading partner countries, including
the South Asian Free Trade Area, which doesnt impose
import duties on scrap metal.
"We have met the prime
minister and he assured us that he will look into the matter,
and will address our concerns with the finance ministry," MRAI
vice president Sanjay Mehta told AMM sister
publication Steel First Sept. 2. "We were told that,
in the first week of September, there might be announcements on
issues raised with the prime minister."
must pay a 4-percent duty on all scrap metal imports, are the
hit hardest by the duty, according to the association.
India relies on
imported scrap as a principal raw material due to the poor
availability of local scrap.
"Of the total imports,
60 percent of scrap is consumed by small electric-arc furnaces
and 40 percent is consumed by big (sector participants) such as
Tata Steel Ltd. and JSW Steel Ltd.," Mehta said.
Most developed and
developing countries dont impose duties on imports of raw
materials such as scrap.
A version of this
article was first published in AMM sister publication Steel