The Hindu Business Line : Bombay Metal bourse seeks excise duty cut

Considering the recent hike in prices of all primary metals in the international market, Bombay Metal Exchange Ltd (BME) has urged the Government to reduce excise duty and CVD rates to 8 per cent from the current level of 16 per cent.

It has also asked the Government to bring down customs duty to zero from the current levy of 7.5 per cent.

BME is the apex body of non-ferrous metals trade and industry for the past 70 years with a wide membership of traders, small and medium scale manufacturing, as well as big units.

Import curbs

"As per the new Import Policy 2006-07, the Government has imposed lot of restrictions on the import of non-ferrous metals scrap. Import of non-ferrous metals scrap will be allowed only from those overseas suppliers who are registered with Director-General of Foreign Trade (DGFT)," Mr Rohit Shah, President, BME, said. Non-ferrous metals are basic raw material and play a vital role as industrial inputs in many industries.

"Such imports will also be only allowed through registered suppliers against letter of credit and no high seas sale would be permitted. The terms and conditions of imports will definitely hamper the smooth functioning of trade and stoppage of high seas sale will create big problems for small units," Mr Shah said. The non-ferrous metals industry needs immediate relief to remain in at par level with international supplier.

Global impact

"Due to the recent hike in the international market, not only the exporters of handicrafts, building and hardware have failed to fulfill their export orders but also many local SSI units are failing to supply their orders. This has affected the medium and small-scale units. Most of these units are on the verge of closure," he said, in a detailed representation sent to the Union Finance and Commerce Ministries.

The boom in prices may ultimately affect the consumers and may also have an adverse effect on the development and prosperity of the country, he said. If no timely action is taken all non-ferrous based industries will be left with no option but to close down, he added.

More Stories on : Commodity Exchanges | Excise and Customs | Metals

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