Govt tightens duty exemption rules for metallurgical coke imports

The government has tightened conditions for claiming exemptions from anti-dumping duty on low ash metallurgical coke, a key carbon input used in steelmaking and the manufacture of ferroalloys and pig iron, making compliance with a prescribed customs procedure mandatory for eligible importers.

In a notification issued on Friday, the finance ministry amended its, earlier notification in July imposing anti-dumping duty on low ash metallurgical coke imported from Australia, China, Colombia, Indonesia, Japan and Russia.

The exemptions cover ultra-low phosphorous metallurgical coke used by ferroalloy manufacturers and specified sizes of coke used in smaller blast furnaces for pig iron production.

The latest amendment could increase compliance requirements for ferroalloy and pig iron manufacturers relying on the exemptions. Importers who fail to satisfy the prescribed conditions risk losing the benefit of the exclusions and becoming liable for the applicable anti-dumping duty.

The move is likely to strengthen customs oversight of imports claiming duty exemptions and ensure that the benefits are restricted to manufacturers using the material for the specified industrial purposes.

The anti-dumping duty applies to low ash metallurgical coke with ash content below 18%. The existing country-specific duty rates range from $42.95 to $128.83 per metric tonne, with the highest levy applicable to imports from China.