Export duty on iron ore and steel intermediaries – An industry perspective!

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The Government has with effect from 19 November 2022 rolled back export duty on iron ore pellets and steel products, including pig iron, flat-rolled products of carbon steel and stainless steel, bars, rods, and non-alloy steel. Export duty on iron ores with a grade higher than 58% has been reduced from 50% to 30%, while the lower grade iron ores no longer attract export duty restoring back the exemption granted up to 21 May 2022.

The duty on the export of iron ore pellets and select steel products was imposed with effect from 22 May 2022, and parallelly, the duty on the export of iron ores and concentrates was increased with the objective of checking on the rising steel prices in the Indian market, addressing shortages and curbing inflation. The move to roll back the export duty within a period of six months is taken considering the stability in domestic prices of the steel products and taking all stakeholders’ concerns into account because the inventory of steel products has risen drastically, and India has become a net importer of steel in October 2022 due to curtailed exports.
In this podcast, the authors are explaining the impacts and implications of why the government has withdrawn the export duty imposed on Iron and Steel items.
Audio Source: An article published on the LKS website in November 2022
Export duty on iron ore and steel intermediaries – An industry perspective! | Lakshmikumaran & Sridharan Attorneys (lakshmisri.com)
Author: Ravi Raghavan, Senior Partner (LKS) and Brijesh Kothary, Associate Partner (LKS)