Business Daily from THE HINDU group of publications
Wednesday, Feb 14, 2007
ePaper


News
Features
Stocks
Cross Currency
Shipping
Archives
Google

Group Sites

Industry & Economy - Textiles
Steel industry opposes duty-free imports scheme

Our Bureau

Seeks certification for inputs, fears misuse of licences

Advertisement
Bharat Matrimony

New Delhi, Feb. 13 The domestic steel industry is up in arms over the Duty Free Import Authorisation (DFIA) scheme introduced by the Commerce Ministry in its Foreign Trade Policy in May 2006.

According to officials of steel manufacturing companies, the scheme is liable to be misused by the trading community and, as a result, steel manufacturers face pricing pressure because of increasing duty-free imports.

On the one hand the scheme permits duty-free imports of inputs for manufacture of goods to be exported, while on the other the goods being exported do not require certification on the origins of the inputs. Moreover, these DFIA licences are transferable and even the transferee is entitled to duty exemptions including basic import duty, additional and special additional and education cess.

This creates scope for exporters to trade in DFIA licences leading to market distortion, industry officials explained. Steel companies want the Government to introduce certification for the input used in manufacturing if the exporters seek DFIA licences.

In the case of steel industry, according to industry estimates, currently around 60 per cent of steel imports are made by traders, and not the manufacturing companies, using DFIA licences.

The data available since the scheme was introduced in May last year and up to December shows that DEPB and Duty Drawback claims for steel have come down by around 25 per cent and 30 per cent respectively while the licence under DFIA has gone up by around 60, indicating that importers are taking this route to replace DEPB and Duty drawback, a senior industry official said, adding that steel imports through Mumbai Port alone has exceeded one lakh tonnes December 2006.

More Stories on : Textiles | Exports & Imports

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
ISB rolling placements draw more


IIM-B placements from March 6
`Students looking beyond IT jobs this year'
RBI acts to rein in inflation
Incomes, wealth jumps drive inflation
Harnessing youth for nation-building
`Hindalco, Vodafone deals reflect resilience of economy'
`Loan growth may taper off'
Runaway prices
`India can attract 25% of global engg process outsourcing'
Sanyo to unveil `green' TV
Finance Ministry confident of meeting excise duty targets for 2006-07
Buddhadeb seeks Italian expertise to boost trade
Japanese teams coming
Reverse auction in infrastructure equipment finance `doing well'
Infrastructure, info tech projects to be developed
13 State PSUs to make turnaround this fiscal
Indian crude basket slips by $1.11 a barrel
IndianOil in talks with Turkey's TAPCO
ONGC plans to drill ultra high-tech wells in onshore assets
Ministry offers Re 1 hike in tanker freight charges
`NTPC should enter power equipment manufacturing'
NTPC set to award contracts for Simhadri expansion, Ennore plant
Maharashtra to buy more power
In the company of men of steel
Tax should not be collected without assessment order: HC
Steel industry opposes duty-free imports scheme
Mumbai plumps for CAS faster
Goel Ganga joins hands with Singapore group for school
Canara Bank sets up chair at MSE
Chamber takes out peace march against levy of mortgage fees
POSCO land acquisition delayed
Patent Pooling catching up in India
Tobacco Board chief for FDI in processing
Tata Motors 2nd trainee batch
Hyderabad to host Bio-Asia 2007
India tops in ground pepper supply to US


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2007, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line