The non-ferrous metal industry has warned the reduction of import duties on tubes and foils made from metals like copper and aluminium would lead to closure of domestic producers. | |
| The Bombay Metal Exchange (BME) in a letter to the finance minister has sought intervention regarding the customs notification no. 27/2004, dated January 23, 2004. |
| |
| BME has called for reduction in domestic duties to provide a level playing field to domestic producers of copper tubes, aluminium foils etc. BME said basic customs duty of 15-20 per cent was being levied on finished products such as copper tubes etc. |
| |
| Logically, the duty on copper cathodes, the basic raw material, should then be at least 10 per cent less than the duty on finished products, or 5-10 per cent. This would create a level playing field for the sector. |
| |
| According to BME president Ashok Bafna, a concessional rate of duty had been imposed on imported copper cathodes and tubes, aluminium foils etc., for use in manufacture of goods of a specified description. |
| |
| "This move makes goods like imported copper tubes much cheaper than Indian copper tubes and will complicate the problems faced by local industry. This is the second reduction in duty since the change in peak rate of duty earlier," he said |
| |
| The tax revision will lead to closure of large number of small-scale intermediary units, throwing people out of employment, he warned. |
| |
| The government had imposed a similar concessional duty on nickel imported by the steel industry. However, following a representation made by the metal trade, the uniform import duty structure for nickel was restored. |
| |
| BME said concessional duties should be applied in a fair and uniform manner on all sections of industry and should not penalise one industry sector to reward another. |
| |
| The notification had granted concessional rate of customs duty on refined copper cathode at 10 per cent and copper tubes at 15 per cent falling under Chapter 8415 10 90, dealing with air -conditioning machines, and 8418 21 00, dealing with compression type refrigerators, and 8413.81, relating to hydraulic, vertical pumps etc. The same concession has been granted on imported aluminium ingots, alloys etc. |
| |
| Manufacturers importing copper tubes for use in air-conditioners and refrigerators now had to pay 15 per cent duty on imported copper tubes, while small scale manufacturing units importing the raw material, cathodes, for manufacture of tubes etc., had to pay 20 per cent import duties. |
| |
| Indian tube manufacturers had to pay high charges for electricity, diesel, petrol and furnace oil, as also octroi, central sales tax, turnover tax and other local levies amounting to additional levy of 10 per cent. This would wipe out small scale units producing tubes, BME warned. |
| |
|
| |
