Metal Container Manufacturers Seeks Relaxation on QCO
Metal Container Manufacturers Association has welcomed the recent announcement by the Hon’ble Finance Minister for reduction of 5% custom
Metal Container Manufacturers Association has welcomed the recent announcement by the Hon’ble Finance Minister for reduction of 5% custom duty for all iron & steel items including tinplate & tin free steel which is major raw material for the Metal Packaging Industry. The association affirms that more measures and support is needed that would help revive the metal packaging industry.
Metal Container Manufacturers Association added “The policy makers are silent on the major issue that is going to hit the industry seriously ie mandatory imposition of BIS standard on tinplate/ tin free steel and tinplate products like easy open end, peel off ends etc., as per Quality Control order dated 17th July, 2020. Sadly this reduction in the import duty may not help the Metal Packaging Industry as the exporters of tinplate & tin free steel are not accepting the orders for supplying these materials to India in the wake of applicability of steel and steel products Quality Control order.”
Metal Container Manufacturers Association said “As regards Steel products like easy open ends, peel off ends and domes and cones etc, the industry is primarily dependent on import of such components as the demand in India does not justify huge capital investment for manufacture of these ends. The industry today is already suffering due to shortage of tinplate/tin free steel, steel products like easy open ends etc and exorbitant increase in their prices. The impact of Quality Control order is serious as there is a demand supply gap of 250000 tonnes per annum and the metal packaging industry has to fill that gap from imports. The tin cans are used for packing essential products like Processed Food, edible oil, dairy and various other perishable food products, therefore, the non-availability of can post 17th April, 2021 will severely affect the processed food industry and also the export of canned food products from India.”
It added “Similar kind of Quality Control orders had been issued earlier also in the year 2008, 2015 and 2017 but keeping in mind the demand supply gap, practical difficulties in implementation and adverse impact and requirement of the MSME sector particularly in the metal packaging , the Government withdrew the draft QCO on tinplate & tin free steel. The situation has not changed since then.”
Metal Container Manufacturers’ Association represents the interest of a large number of MSMEs engaged in the manufacture of tin containers and closures.