India Metals Group Calls for Reduction in Excise Duty

The India-based Bombay Metal Exchange is urging the India government to cut the excise duty and CVD rates in half. The organization cited the sharp jump in metals prices on the world market as the reason for the need to cut the duty.

Additionally, according to Sify, the Bombay Metal Exchange is asking the Indian government to lower the customers duty to zero.

The Bombay Metal Exchange Ltd. represents Indian manufacturers.

"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)," Rohit Shah, president of BME, said. Non-ferrous metals are basic raw material and play a vital role as industrial inputs in many industries.

He added that about 40 percent of the raw material needed by manufacturers in the county comes from the scrap industry, with most of it being imported from other countries.

Shah estimates that between 600,000-700,000 metric tons of scrap metal is imported each year by Indian companies, according to Reuters.

"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," Shah said. The non-ferrous metals industry needs immediate relief to remain in at par level with international supplier.