India is all out to make its steel exports competetive and has increased the duty entitlement passbook scheme (DEPB) entitlement rates, thereby granting a direct benefit in the range of Rs 1932 to Rs 4287 per metric tonne.
The maximum benefit in terms of DEPB benefits have been extended to galavanised product (GP) exporters (4 per cent) followed by HR exporters (3 per cent) and CR exporters (2 per cent). At the current level of international prices the benefits accruing to steel exporters by way of DEPB rate revision would be about Rs 1932 per MT in case of HR coils/plates, Rs 2974 in case of CR coils/sheets and Rs 4287 per MT in case of galvanised sheet/coils.
According to Joint Plant Committee (JPC) under the ministry of steel, the duty benefits to be utilised against import duties incurred for future import consignments are substantial and would stimulate export of these items to a great extent.
Ministry of steel emphasisess that the duty revisions were necessitated due to changes in the value addition norms (difference between FOB value of exports and C&F value of imports) and revisions in the customs duty structure announced in 2002-03 Budget.
The best part is this is being done when major steel-producing nations are meeting in Paris for three days beginning today to study a US proposal to eliminate trade obstacles shortly before Europe decides whether it will retaliate against existing US duties.
Though the three days of technical talks are not seen yielding decisions, US hopes to use them to persuade others to endorse proposals to eliminate international steel subsidies and trade barriers at a new high-level meet in December.
The proposals unveiled by the US Commerce Department this week come as the European Union sits down to decide whether it will impose sanctions on US products for slapping hefty tariffs ranging up to 30 percent six months ago on US steel imports.
The EU has delayed a decision on more than $300 ($1=Rs 48.44) million of sanctions and has cautiously welcomed US exemptions on heavy steel duties. But it is looking for further concessions and has said it will review the question of sanctions by end-September.
It is worth mentioning that domestic steel exporters got a shot in arm when the US International Trade Commission rejected an appeal to impose new import duties on cold rolled steel imports from five countries including India.
The US steel industry had been asking for increasing protection from imports and has been demanding steep anti-dumping duties on cold-rolled steel imported from countries like Australia, Sweden, Japan, Thailand and India.
With a 4-1 vote late August, the commission found the five countries not guilty of selling cold-rolled steel products far below fair-market value or the cost of production. The ruling exempts the countries from paying up to 150 percent in proposed anti-dumping duties.
The commission will still consider the U.S. steel industry
