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Budget 2020 – Indian Copper Producers Seek Duty Waiver on Copper Concentrate Imports

Metal News - Published on Wed, 15 Jan 2020

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Indian copper producers have demanded waiver of 2.5 per cent duty on imports of concentrates. They said “Indian copper smelters are Custom Smelters' and depend on imported copper concentrates for about 95 per cent of their requirement. Given the conversion business model of domestic smelters, they are at a disadvantageous position as compared to the 'integrated nature' of smelters from countries having advantage of their own mines. The situation gets aggravated due to inverted duty structure prevailing, whereby domestic smelters incur customs duty of 2.5 per cent on their raw material copper concentrates, while finished goods are imported at zero duty ASEAN-FTA into the country.”

They said “Import duty of 2.5 per cent is a large amount for a high value product like copper and the domestic industry already operating in low margins against the backdrop of ever-increasing imports and reducing domestic share. This inverted duty structure, coupled with impact of FTAs is making the domestic copper smelters uncompetitive which have resulted in huge trade deficit in copper of USD 4.3 billion in FY19 which was in trade surplus of USD 1.2 billion in FY11.”

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Posted By : Rabi Wangkhem on Wed, 15 Jan 2020
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