India’s Ministry of Steel has published on 6 June 2022 the findings with respect to request of domestic industry for clearance of pre contracted orders without imposition of export duty. The Office Memorandum to Secretary Commerce & Director General of Foreign Trade said “Customs Notification of Department of Revenue of 21 May 2022 regarding calibration of import & export duties on several steel & steel raw materials. In this regard, several representations have been received in Ministry of Steel from the domestic steel industry including Indian Steel Association, Jindal Stainless, Indian Stainless Steel Development Association & Material Recycling Association of India seeking exemption from export duty for the existing orders & contracts. Ministry is of the view that the concerns of the industry appear justified in such cases where the Irrevocable Commercial Letters of Credit have already been opened and may be considered favorably.” The memorandum added “It has been learnt from the industry that about 2 million tonnes of steel or iron ore pellet orders for export are in the pipeline where either Letter of Credits were established, or the Sales Contracts were executed prior to the date of notification mentioned above. The representations also mention that in the past, Transitional Arrangements’ for cushioning the business from shift in policy have been notified. On examination, it is seen that only 541,940 tonnes of steel and iron ore pellet orders are backed by Letters of Credit.”
India’s Ministry of Steel has published on 6 June 2022 the findings with respect to request of domestic industry for clearance of pre contracted orders without imposition of export duty. The Office Memorandum to Secretary Commerce & Director General of Foreign Trade said “Customs Notification of Department of Revenue of 21 May 2022 regarding calibration of import & export duties on several steel & steel raw materials. In this regard, several representations have been received in Ministry of Steel from the domestic steel industry including Indian Steel Association, Jindal Stainless, Indian Stainless Steel Development Association & Material Recycling Association of India seeking exemption from export duty for the existing orders & contracts. Ministry is of the view that the concerns of the industry appear justified in such cases where the Irrevocable Commercial Letters of Credit have already been opened and may be considered favorably.” The memorandum added “It has been learnt from the industry that about 2 million tonnes of steel or iron ore pellet orders for export are in the pipeline where either Letter of Credits were established, or the Sales Contracts were executed prior to the date of notification mentioned above. The representations also mention that in the past, Transitional Arrangements’ for cushioning the business from shift in policy have been notified. On examination, it is seen that only 541,940 tonnes of steel and iron ore pellet orders are backed by Letters of Credit.”
