Steel industry alleges undervaluation in import of HR coils
18 December 2015
Industry body Indian Steel Association (ISA) has approached the Central Board of Excise and Customs (CBEC) alleging undervaluation in import of 35,000 tonnes of steel products originating from South Korea.
In a letter to CBEC chairman Najib Shah in October, ISA has alleged that during this time, import consignment of hot rolled (HR) steel coils to the tune of 35,000 tonnes have come into the country with a cost, insurance and freight (CIF) in the range of $224-247 per tonne, a source said.
"The industry is claiming that this can be a case of under-voicing or under-valuation of the consignment," the source added.
In September this year, India had imposed a safeguard duty of 20 per cent of certain grades HR coils and this had come out in a notification on September 14, 2015.
Drawing CBEC's attention to the imports that happened at Indian ports in September before the levy of the safeguard duty, the letter said the consignments were custom cleared with the lowest price being $308 per tonne.
"ISA says that the import clearance in October at $224 per tonne raises a serious issue on the valuation of the consignments, which may be an intent to avoid paying the extra on safeguard duty by under invoicing the imports," he said.