EEPC seeks clarification on export duty on galvanised steel

EEPC India, (formerly known as Engineering Export Promotion Council), has sought clarification from the Commerce Ministry and the Central Board of Excise and Customs(CBEC), Finance Ministry, on policy with regard to export duty on galvanised steel.

The move comes after the recent decision of Kolkata port to impose 20% export duty on galvanised steel, which has led to an imbroglio over steel shipment from the port.

"A large number of shipments of major primary steel manufacturers are being held up due this confusion at the Kolkata Port. At a time when engineering exports was down by 8.33% during April-October 2012, such a stoppage in only one port of country will create considerable problems in halting the decline in exports in the current year," said Aman Chadha, chairman, EEPC India.

According to the second schedule of the customs tariff, all products under HS Code  7210 (flat rolled products of iron or non-alloy steel, plated or coated  with  zinc)  are subject to 20% export duty. However, so long no such duty was being imposed, and Kolkata port was the only port to impose such duty, said EEPC spokesperson.

Exporters have requested EEPC to take up the matter with the customs authorities and include flat rolled products of iron or non-alloy steel, plated or coated with zinc, in the exemption category.

Customs authorities could not be reached for comments.

"The government must clarify whether there was an inadvertent drafting error with the schedule, or was/is there an actual policy decision to impose export duty. The government must also clarify why export duty is being sought at Kolkata port only and not at any other ports," said Chadha.