Reuters reported that JSW Steel will continue to supply products to its buyers in Europe without passing on any increase in costs despite imposition of 15% export tax. JSW Steel’s Joint Managing Director & Group CFO Mr Seshagiri Rao told Reuters "They were expecting India will accelerate. The customers will not see me tomorrow if I stop it. Despite the export tax, JSW Steel would not pass on any extra costs to its buyers. I have to take that loss.”JSW Steel also clarified that export duties will be applied to cargoes that were not cleared by customs. JSW's deputy managing director Mr Jayant Acharya said "Whatever we have to clear with export duty payment, we'll be doing under protest because of clause 1.05 of the foreign trade policy. In the past, precedence is there that the LCs, which have been issued and contracts valid, those will be allowed to be exempted. So that is the assumption based on which we would be paying under protest.”JSW Steel expects the new steel export duties to be temporary and said it will continue its exports around 15-20% of its overall sales to service global customers, despite the duties.The Indian government imposed a 15% tax on exports of some steel products on 22 May, stoking concerns among steelmakers about the viability of shipments in the seaborne market.
Reuters reported that JSW Steel will continue to supply products to its buyers in Europe without passing on any increase in costs despite imposition of 15% export tax. JSW Steel’s Joint Managing Director & Group CFO Mr Seshagiri Rao told Reuters "They were expecting India will accelerate. The customers will not see me tomorrow if I stop it. Despite the export tax, JSW Steel would not pass on any extra costs to its buyers. I have to take that loss.”JSW Steel also clarified that export duties will be applied to cargoes that were not cleared by customs. JSW's deputy managing director Mr Jayant Acharya said "Whatever we have to clear with export duty payment, we'll be doing under protest because of clause 1.05 of the foreign trade policy. In the past, precedence is there that the LCs, which have been issued and contracts valid, those will be allowed to be exempted. So that is the assumption based on which we would be paying under protest.”JSW Steel expects the new steel export duties to be temporary and said it will continue its exports around 15-20% of its overall sales to service global customers, despite the duties.The Indian government imposed a 15% tax on exports of some steel products on 22 May, stoking concerns among steelmakers about the viability of shipments in the seaborne market.
