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PPMAI requesting finance minister not to further hike import duty on stainless steel-不锈钢展-2015第十六届广州国际不锈钢工业展-效果最好的不锈钢展会-The 16th China(Guangzhou)Int'l Stainless Steel Industry Exhibition
9/22/2014 不锈钢展-不锈钢展会-效果最好的不锈钢展会- Stainless Steel Exhibition |
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Process Plant Machinery Manufacturing &
Exporting companies in the country have written to Mr Arun Jaitley Union
Finance Minister of India to stall any move by his ministry to increase import
duty on stainless steel from recently hiked present 7.5 % to 15 % in near
future.
The Union Finance Ministry had increased import duty on flat rolled stainless
steel products from 5% to 7.5% in the Union Budget 2014 to 2015.
Said agitated Mr VP Ramachandran, secretary, Process Plant and Machinery
Association of India said that “We are alarmed to observe that the steel
ministry has initiated a proposal to increase the import duty on stainless
steel products from recently enhanced duty of 7.5% to 15% with tremendous haste
for stainless steel coils and sheets used by hundreds of SMEs. Such an action
to increase the import duty from recently increased level of 7.5% to 15% on
imports of stainless steel coils and sheets will lead to anamolous inverted
import duty structure given the fact that stainless steel end using products
especially in chapter 73 attract import duty of 10% only.”
Mr Ramachandran said that “This action will make domestically produced end
products far less competitive vis a vis imports of finished end use products .
These imports will replace the demand for domestically produced finished end use
products and will kill the domestic end using industry and RESULTANTLY the
domestic stainless steel industry. For example , the utensil industry will be
immediately hurt. Therefore the move to increase the import duty to 15% will be
counterproductive.”
He said that “Indian stainless steel industry has a poor range of products with
near monopoly of one producer in private sector. Salem Steel Plant has limited
range of products. The domestic industry has enjoyed automatic protection due
to the impact of depreciation of the rupee from INR 40 a dollar to INR 60 in
past two years. There are anti dumping duties applicable on a host of stainless
steel imports from practically all countries on the behest of local single
private sector producer.”
Mr Ramachandran said that “The proposal to increase rate of duty to 15% exceeds
the peak rate of duty 10%. Such a proposal will mean higher duty for raw
material imports than the finished goods and capital goods which will hurt the
capital good industry apart from consumer goods industry. A host of the imports
in stainless steel flat products by the end users do not offer competition to
the domestic production sources because the domestic industry does not
manufacture these grades and sizes.”
He said that “PPMAI membership comprises of mostly SMEs including Consulting
Engineers & Engineering, Procurement & Construction Management
Companies , Engineering Procurement & Construction Contractors. Equipment
Manufacturers & Fabrication Companies, Project Construction Contracting
Companies. Inspection and Quality Assurance Companies, who will see their
operating margins fall sharply if you go ahead with this move. The domestic
producers are catering to low end needs whereas our members cater to high end
products in domestic and export markets for which imports are essential.”
He said that “The proposal to raise import duty on imports of all including
high end stainless steel products will help create monopoly for the domestic
producer and will deprive our members from gaining competitive edge in global
markets. We do have confidence in the new government that it will take care of
all end user industries including SMEs and not support any action which leads
to creating monopoly to suit one business house.”
不锈钢展-2015第十六届广州国际不锈钢工业展-效果最好的不锈钢展会-The 16th China(Guangzhou)Int''l Stainless Steel Industry Exhibition
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