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Time of India
3 days ago
- Business
- Time of India
Stricter rules likely to curb substandard steel imports
India 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.
Economic Times
4 days ago
- Business
- Economic Times
Stricter rules likely to curb substandard steel imports
Synopsis India is planning to tighten norms for steel imports under the advance authorisation scheme to curb the inflow of substandard, non-BIS compliant steel. The government is considering lowering the Export Obligation Period to six months and withdrawing QCO exemptions for domestic importers. These measures aim to prevent the diversion of duty-free steel into the domestic market, protecting local manufacturers. Reuters Steel mill (Image for representation) India 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 currently levies an interim 12% safeguard duty, and a 7.5% 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 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 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 to Fitch Ratings, India is also expected to extend its 12% 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 steel imports fell by 16% annually in the first half of this calendar year. "Barriers to steel imports should benefit domestic producers," Fitch added.
Time of India
4 days ago
- Business
- Time of India
Stricter rules likely to curb substandard steel imports
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel India 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 currently levies an interim 12% safeguard duty, and a 7.5% 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 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 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 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 to Fitch Ratings, India is also expected to extend its 12% 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 steel imports fell by 16% annually in the first half of this calendar year. "Barriers to steel imports should benefit domestic producers," Fitch added.
Time of India
07-07-2025
- Business
- Time of India
Centre may relax quality control compliance window for steel intermediates
The centre is likely to give a 15-20-day window before enforcing wider compliance to quality control orders (QCO) on intermediate material for manufacturing final steel products. Sources said a call on the relaxation was taken by the Steel Ministry after multiple stakeholders flagged concerns over the less time they were given to comply with the enhanced quality control mandate which was issued in June. The Bureau of Indian Standards (BIS) defines the quality norms that need to be met by products. 'Companies will be given additional time to clear inventory of any non-BIS compliant steel intermediates,' a senior official told ET while adding a call on giving the relaxation was taken during a stakeholder consultation on BIS certification under the QCO framework Monday. 'The core concern revolves around BIS certification requirements, particularly for imports with specific focus on Chinese-origin products entering India through Vietnam,' the official said. The steel ministry has also constituted a Technical Committee to examine issues of substandard imports bypassing quality control regulations. Officials said most cast iron (CI) and stainless-steel imports coming from Vietnam are essentially of Chinese origin. Live Events 'Vietnam has seen large-scale Chinese investment, and many of the manufacturing units there are fully or partially Chinese-owned. Due to a Free Trade Agreement (FTA), there is no import duty on goods coming from Vietnam, making it an easy backdoor for Chinese products to enter India,' the official added. Non-BIS compliant products cannot be sold or imported in the country once a QCO is enforced. In June this year, the Steel Ministry decided that intermediate materials used for manufacturing final products under the QCO regime need to comply with BIS norms as well. This was strictly opposed by micro, small, and medium enterprises, and other producers of finished steel products. According to the Steel Ministry, there is a very high possibility of cheap steel getting pushed into the Indian market unless adequate measures are put in place for import of quality steel. 'It is to be noted that if intermediate inputs (which form the core of finished products like HR coil, CR coil or coated steel) are not BIS compliant and are substandard, the final product cannot be BIS compliant,' the ministry added.
