Stricter rules likely to curb substandard steel imports
plans to tighten the
advance authorisation
norms for
steel imports
, aiming to curb large-scale inflows of substandard inputs.
According to officials aware of the development, instances of non-Bureau of Indian Standards (non-BIS) compliant steel being sold in the domestic market are being flagged.
These substandard products are said to be imported duty free by export-oriented units under the advance authorisation.
"The imported steel, meant for export production is often sold in the domestic market, resulting in revenue loss for the government and putting domestic steel makers at a competitive disadvantage," the official told ET.
India currently levies an interim 12 per cent
safeguard duty
, and a 7.5 per cent basic customs duty on steel imports. There is also a Quality Control Order (
QCO
) which bans the import and sale of non-BIS steel in the country.
The advance authorisation scheme allows exporters to import raw material at nil duty and without
QCO regulations
with an export mandate that needs to be met within 18 months.
"Eighteen months is too long, and traceability of non-BIS compliant steel is a matter of concern since it is making its way to the domestic market and not being used to make exported products," the official said.
The centre is now said to be considering lowering the Export Obligation Period (EOP) of advance authorisations to six months in a bid to ensure the
substandard steel
is not diverted.
Besides tightening the Advance Authorisation regime, India is also planning to withdraw an exemption from the QCO granted to domestic importers under the scheme. This too is aimed at plugging misuse of the scheme, officials said.
According to
Fitch Ratings
, India is also expected to extend its 12 per cent safeguard duty and even revise the duty rates upwards as industry conditions worsen globally.
"Governments around the world have been raising barriers to steel imports in recent months," Fitch said while adding India has introduced other non-tariff measures to protect domestic producers in recent months.
India's steel imports fell by 16 per cent annually in the first half of this calendar year. "Barriers to steel imports should benefit domestic producers," Fitch added.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Deccan Herald
an hour ago
- Deccan Herald
India's state refiners buy oil elsewhere after Russia pause
By Rakesh Sharma, Serene Cheong and Sherry SuIndia's state-owned oil refiners are pulling back from purchases of Russian crude for now, according to people with direct knowledge of the companies' procurement plans, as Washington ratchets up the pressure on New Delhi over the flows with a wave of harsh including Indian Oil Corp., Bharat Petroleum Corp. and Hindustan Petroleum Corp. plan to skip spot purchases of the crude in the upcoming buying cycle, until there's clear government guidance, said the people, who asked not to be identified as they aren't authorised to speak publicly. On Thursday, IOC bought five million barrels of oil from the US, Brazil and Libya, the latest in a string of purchases for relatively quick delivery. .India-US trade deal off the table? Donald Trump says no negotiations till tariff row global oil market has zeroed in on India's crude purchasing after President Donald Trump doubled the levy on all Indian exports to the US as a direct punishment for the country's refiners taking Russian crude. The escalation — which hasn't yet been matched by similar action against China, another major buyer — is meant to put pressure on Moscow to end the war in tension has swung futures this week as traders assess the odds of disruption to flows, as well as Moscow's ability to find alternative buyers should Indian refiners opt to take fewer barrels. Brent was little changed near $67 a barrel on Thursday, following a five-day New Delhi hasn't given any direction to refiners to stop buying Moscow's crude, with Prime Minister Narendra Modi's government pushing back against Trump's tariffs. Bloomberg earlier reported that refiners had been asked to draw up plans for buying non-Russian crude. .An oil ministry spokesman didn't immediately reply to an email seeking comment. Separately, IOC, BPCL and HPCL didn't reply to messages from Bloomberg seeking term contracts, oil producers and refiners typically deal with purchases in short-run cycles, with cargoes booked about one-and-a-half to two months ahead of loading. That planned-ahead pattern allows users to ensure they have enough on hand to meet their pause will affect buying of Russia's Urals cargoes for October-loading, they overall purchases of October-loading Urals by India's refiners are unlikely to drop to zero, a dip could prompt a rush for other grades, with US, Middle Eastern and African cargoes as alternatives, said traders, who buy and sell across the region. Discussions for October cargoes have not yet started, though traders foresee deeper Russian discounts and more offers to China, which doesn't typically take much of the variety. In late-July, purchases of September-loading Urals concluded with India taking fewer barrels due to pricey offers. Since then, state-owned refiners have issued a slew of tenders, soaking up spot cargoes from other regions. Private processors Reliance Industries Ltd. and Nayara Energy Ltd., meanwhile, have been quiet, with the latter grappling with a steep drop in run rates following sanctions imposed by the European Union. Cargoes of Urals — Russia's benchmark crude grade from the west of the country — for August- and September-loading are likely to be delivered as planned, unless New Delhi advises otherwise, the people said. In recent days, tankers have offloaded some cargoes at Indian ports, albeit with some slight delays. At its peak, India imported more than 2 million barrels a day of Russian oil, up from almost zero purchases before the Ukraine war. 'There would be some operational disruptions for a period, but the crude supply-demand would balance out,' said R. Ramachandran, former director of refineries at Bharat Petroleum. If Russian supplies are more difficult, 'Middle East crudes — with the geographical advantages and a wide range of quality will be a prime substitute, especially from Saudi and Iraq,' he said.
Economic Times
2 hours ago
- Economic Times
China expresses 'serious concern' over Israel plan to control Gaza
(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online.
Time of India
2 hours ago
- Time of India
New steel ministry rules rattle medical device makers: Medical device makers seek BIS exemption; industry warns of system disruption
Representative image (AI-image) Medical product manufacturers face potential supply disruptions due to new steel ministry regulations, which require raw materials used in steel products to meet Indian standards. Industry leaders expressed concerns about their inability to comply with the latest rules that mandate BIS certification for imported raw materials like hot rolled steel and ingots. Previously, this certification was only necessary for finished steel products from foreign suppliers. Manufacturers have petitioned the steel ministry to exempt stainless steel capillary imports from BIS certification requirements. Several manufacturers interviewed indicated that importing specific steel components remains essential, as low annual requirements make BIS certification commercially unviable for international vendors, a sreported by ET. Hindustan Syringes & Medical devices, which relies on Korean suppliers for specialised stainless steel capillary tubes, faces operational challenges. "This is a low volume material hence making the BIS certification process is not feasible both economically and operationally. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like You Might Want To Buy Baking Soda In Bulk After Reading This Read More Undo We have therefore requested the ministry of steel for exemption of the BIS requirement for the import," said Rajiv Nath, MD, HMD. The Association of Indian Medical Device Industry (AiMeD) has warned of potential healthcare system disruptions in a letter to the ministry. "Despite efforts to source stainless-steel strip from local manufacturers such as Tata Steel , Jindal, BSL, Anil Metal, Stelco, and Mecon Limited, the required specification for manufacturing SS capillary tubing is not available in India as it is not sustainable or economical to produce small batches of tubing," the letter stated. "Manufacturing medical devices to global standards requires this specific stainless steel. Without it, the production, product quality, and delivery commitments, especially for exports, are at risk," the letter further noted. Stay informed with the latest business news, updates on bank holidays , public holidays , current gold rate and silver price .
