Export duty was imposed on specified iron and steel products in May, 2008 which were modified in June, 2008. Considering the steep fall in the international prices recently, Government have decided to withdraw the export duty on certain items such as pig iron, iron and steel ingots, bars and rods, angles shapes, sections. However, scrap would continue to attract the existing rate of export duty.
Export duty of 15% ad valorem was imposed on iron ore (lumps and fines) in June, 2008. The international price of fines has gone down substantially making their exports unremunerative. With a view to improve the export competitiveness of the mining industry, and for protecting the interest of the employees engaged in this sector, the 15% ad valorem export duty on fines has been replaced with a specific duty of Rs.200 PMT. The rate of export duty on iron ore lumps continues to remain unchanged.
The aviation sector is experiencing financial stress, which is partly due to high price of Aviation Turbine Fuel (ATF). In order to give relief to this sector, the basic customs duty of 5% has been abolished. Though there are no imports of ATF and it is a freely priced petroleum product, the price of domestically produced ATF is based on import parity price factoring in the basic customs duty. The exemption would result in lowering of the base price of ATF and, consequently, lowering the incidence of excise duty and VAT, giving substantial relief to the aviation sector.
In order to provide the required protection to domestic ferro-molybdenum and ferro-vanadium industry, the full exemption from basic customs duty has been withdrawn. These items will now attract basic customs duty of 5% .
The above duty changes will be effective from 31.10.2008. Export duty changes alter export and customs treatment for iron ores, steel products and aviation fuel pricing. Modifications to export and customs duties effective 31.10.2008: export duty withdrawn on specified iron and steel products while scrap retains its duty; ad valorem export duty on iron ore fines replaced by a specific export duty of Rs.200 per metric tonne and duty on iron ore lumps remains unchanged; basic customs duty on Aviation Turbine Fuel abolished; full exemption for ferro molybdenum and ferro vanadium withdrawn and these items will attract basic customs duty at the newly stated rate.
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Provisions expressly mentioned in the judgment/order text.
Export duty changes alter export and customs treatment for iron ores, steel products and aviation fuel pricing.
Modifications to export and customs duties effective 31.10.2008: export duty withdrawn on specified iron and steel products while scrap retains its duty; ad valorem export duty on iron ore fines replaced by a specific export duty of Rs.200 per metric tonne and duty on iron ore lumps remains unchanged; basic customs duty on Aviation Turbine Fuel abolished; full exemption for ferro molybdenum and ferro vanadium withdrawn and these items will attract basic customs duty at the newly stated rate.
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