Budget 2011: FIEO demands import duty on pig iron be reverted to nil

It has also demanded the reduction in basic customs duty on Copper Concentrate (ITC HS Code 26.03) from 2% to Nil.

By Agencies | Feb 10, 2011, 12.57 PM IST

NEW DELHI: FIEO has demanded that import duty on pig iron be reverted to nil. Pig iron is key raw material for Foundry Industry. The duty in most competing countries is nil. Domestic prices in India are higher as compared to prices in China by 20-25% & have been steeply going up since December, 2009. The import duty was changed to nil vide Notification No.56/2008 which was subsequently made as 5% vide Notification No.122/2008.

It has also demanded the reduction in basic customs duty on Copper Concentrate (ITC HS Code 26.03) from 2% to Nil.

Copper concentrate is imported at LME prices and refined copper is sold at domestic market or exported at LME prices. The conversion cost and other charges are recovered from Treatment charges and refining charges (TC/RC) allowed by the mines.

FIEO states that TC/RC rates are dollar denominated whereas conversion cost is rupee denominated. With the hardening of rupee against dollar, the net realizations on TC/RC has come down which again puts margins under severe strain.

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