Aluminium Industry Seeks Raising Import Duty To 7.5 pc On Low-grade Scrap
In a representation to the Central Board of Indirect Taxes (CBIC), the association said that since the world is using and promoting imports of only high-quality scrap, it is the need of the hour for India to establish similar quality standards
New Delhi: The Aluminium Association of India has sought the finance ministry’s support, citing shrinking export markets due to high US tariffs, rising protectionism in Mexico, Indonesia's capacity expansion, Russian dumping, and a surge in low-quality scrap and aluminium imports from Gulf and Asean countries.
In a representation to the Central Board of Indirect Taxes (CBIC), the association said that since the world is using and promoting imports of only high-quality scrap, it is the need of the hour for India to establish similar quality standards. “As major economies are protecting their domestic aluminium industries through higher import duties and other trade measures to attract investments, expand capacities and reduce import dependence, India should also strengthen safeguards,” it said.
The association also urged the government to continue the existing duty structure on aluminium products and consider higher basic customs duty and other trade measures to curb the surge in imports of poor quality scrap, citing examples of countries such as Mexico, the US and Canada, where duties range between 15 per cent and 50 per cent.
It has requested to ensure that the final BIS standard titled Aluminium & Aluminium Alloy Scrap - Requirements & Conditions of Delivery' is notified without changes, saying it has already been approved by bodies such as Niti Aayog, and BIS. “This will ensure that India does not become a dumping ground for unchecked quality of hazardous global aluminium scrap,” it said, adding that once notified, it would classify aluminium scrap into different grades based on aluminium content, ranging from above 95 per cent to below 60 per cent.
The association also suggested raising the import duty to 7.5 per cent on low-grade aluminium scrap (Grades 3 to 7) thereafter to curb imports of poor-quality scrap into the country. “To restrict imports of poor-quality scrap, import duty on low grade scrap should be enhanced to 7.5 per cent,” it said, adding a calibrated customs duty framework, along with immediate notification of BIS scrap standards, will help protect domestic value creation while supporting quality-led recycling.
