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Assocham Prompts Government To Bring Down Customs Duty On Copper Concentrate

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Assocham has prompted federal government to reduce custom-mades duty on copper concentrate to zeroNew Delhi: Industry body Assocham has actually urged the government to reduce the customs task on copper concentrate to absolutely no from the current 2.5 per cent, in order to provide a level-playing field to all stakeholders.This move, it has actually said, will also assist the industry take on imports of value-added copper items from free trade agreement (FTA) nations under nil duty.Copper concentrate is the standard raw material utilized by the copper market.

Given the non-availability of copper concentrate in India, there is no economic rationale to continue with import task on copper concentrate and it is sent to reduce custom-mades responsibility on copper concentrate from 2.5 per cent to nil.

This will enable us to have an equal opportunity and take on imports of worth included copper items, from FTA nations under Nil task, according to the pre-budget tips by Assocham.The Indian copper industry imports 95 percent of the copper focus on account of its limited schedule in the nation.

The domestic accessibility is simply 5 per cent of the total requirement.The present customizeds responsibility on import of copper focuses is 2.5 percent whereas the refined copper is being increasingly imported into India at nil task under the Free Trade Agreements, making it a clear case of an inverted responsibility structure.Most leading economies such as Japan, China, Thailand and Malaysia do not have enough domestic focuses however these nations allow complimentary import of copper concentrate to guarantee schedule of this essential metal for value addition in their country.This has impacted level-playing field for Indian smelters as the cost structure of smelters in those countries are lower on account of absolutely no import responsibility on copper concentrate.Sourcing of copper concentrates by India from some significant countries is already threatened due to exports limitations from supplier countries like Indonesia, an FTA partner nation of India.

This leaves India with limited option to source under FTA route from Chile which has long term dedications (approximately 90 per cent of their production) to nations like Japan, China and others who have actually bought Copper mines in these countries.Unfortunately, apart from Chile and Indonesia, the majority of the copper concentrate surplus countries are not covered under FTAs with India.No domestic downstream market will be adversely affected by task decrease as it is a starting point of the improved copper worth chain for bulk of the market and will provide a much-needed relief to the market which is experiencing extremely adverse patterns in its value drivers.Indian fine-tuned copper market needs all the assistance from the federal government in sourcing its basic material and thus it makes tremendous financial sense to excuse it from customizeds task.




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