The government has announced the withdrawal of steel export duties and reductions in coal import duties, effective November 19, 2022.
The Central Government has removed the export duty on iron ore lumps and fines with a Fe content of less than 58%, iron ore pellets, and the specified steel products, including pig iron, to return things to the way they were before May 22, 2022. As a result, exports of iron ore lumps and fines will incur no export duty if the Fe content is less than 58% and a 15% export duty if the Fe content is greater than 58%. Iron ore pellets will be subject to no export duty. Exports of pig iron and steel products classified as HS 7201, 7208, 7209, 7210, 7213, 7214, 7219, 7222, and 7227 will also be duty-free.
Furthermore, import duty reductions on anthracite/PCI coal, coking coal, coke and semi-coke, and ferronickel have been discontinued. As a result, imports of anthracite, PCI, and coking coal, as well as ferronickel, will be subject to a 2.5% duty. Imports of Coke and Semi-Coke will be subject to a 5% duty.
Following a sharp and steady rise in steel prices, and in order to increase the availability of both finished steel and raw materials or intermediates required for steel manufacture, the government implemented several tariff measures earlier this year. With effect from May 22, 2022, the export duty on iron ore lumps with more than 58% Fe content was raised from 30% to 50% ad valorem; an export duty of 50% was imposed on iron ore with Fe content less than 58%; an export duty of 45% was imposed on iron ore pellets; and an export duty of 15% ad valorem was imposed on different forms of alloy and non-alloy steel, including pig iron (HS 7201, 7208, 7209, 7210, 7213, 7214, 7219, 7222, and 7227). Also, import duty exemptions were given to anthracite and PCI coal, coking coal, coke and semi-coke, and ferronickel.
Hopefully, the above changes in government policy will give the domestic steel industry a boost and increase exports, without affecting domestic consumers or other industries.
GoI Press Release dt. 19/11/2022: Steel Export Duty and Concessions in Coal Import Duty withdrawn by Govt.