The Commerce Ministry's Investigation Arm DGTR Has Recommended Increasing Customs Duty On 'Ferro Molybdenum', Used In Steel, Nickel, And Cobalt Alloys, From South Korea

DGTR Suggests A Rise In Iron Alloy Import Duty From South Korea For Two Years

DGTR, the investigation arm of the commerce ministry, suggests raising the customs duty on the South Korean 'Ferro Molybdenum', which is employed for making nickel, steel, and cobalt alloys, considering the surge in imports as per the FTA.

The CEPA (Comprehensive Economic Partnership Agreement) was signed by both countries a decade ago.

The previous year in October, India tried to find out if rising South Korean imports were affecting the domestic producers. In the investigation, the Directorate General of Trade Remedies (DGTR) stated that imports rose in absolute terms with respect to production in India and complete imports.

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According to DGTR, the Ferro Molybdenum imports inclined when customs duties were not imposed.

Hence, it was deemed fit to suggest a bilateral security measure for two years.

According to the group, the duty for the initial and second year must be raised by 100 percent and 75 percent, respectively. In a formal application under the bilateral security efforts with regard to India-Korea free trade agreement filed by The Indian Ferro Alloy Producers' Association along with Premier Alloys & Chemicals, Boon Metal & Alloy Corporation, and Team Ferro Alloys, it was claimed that a rise in the product's imports is seriously affecting local producers. In this pact, India reduced the product's customs duties.

The application stressed upon the fact that the product's imports rose in absolute terms with respect to India's consumption and production.

There were sudden and noticeable jumps in imports during 2018-19 and 2021-22.

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The final decision regarding the raise in duty will be taken by the finance ministry, which will support the domestic industry by bringing the chemical's pricing at par with the international one.

Both the country's bilateral trade rose from 25.6 billion in 2021-2022 to USD 27.9 billion in 2022-2023 and heavily favours Korea.

According to the Procurement Resource article, DGTR of the commerce ministry wants to impose a customs duty on South Korean 'Ferro Molybdenum' imports to support the domestic industry. Since the cheap imports from the country are hurting domestic producers, it was crucial to impose some customs in order to bring both regions' prices to par. The final decision for the duty will be taken by the finance ministry.