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Ambiguity in duty hits galvanised steel export

Ambiguity in duty hits galvanised steel export
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Reports suggest that export of huge amount of galvanised steel is affected because of confusion over export duty on the product and consequently exporters are seeking clarity on the issue.

The recent move by Kolkata port to impose 20 percent export duty on galvanised steel created confusion among primary steel manufacturers.

Following this, EEPC India, (formerly known as Engineering Export Promotion Council), has sought clarification from the Commerce Ministry and the Central Board of Excise and Customs(CBEC), Finance Ministry, on policy with regard to export duty on galvanised steel.

According to the second schedule of the customs tariff, all products under HS Code 7210 (flat rolled products of iron or non-alloy steel, plated or coated with zinc) are subject to 20 percent export duty. However, so long no such duty was being imposed, and Kolkata port was the only port to impose such duty.

Aman Chadha, Chairman, EEPC India opposed the levy of duty by the port saying that such a move in only one port of country will create considerable problems in halting the decline in exports in the current year.

It is learnt that engineering exports declined 8.33 percent during April-October 2012. Exporters have requested EEPC to take up the matter with the customs authorities and include flat rolled products of iron or non-alloy steel, plated or coated with zinc, in the exemption category.

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