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Export Policy for Iron Ore

THE POLICY FRAMEWORK

Important Policy Measures

  1. In the new Industrial Policy announced in July, 1991 Iron and Steel industry, among others, was removed from the list of industries reserved for the public sector and also exempted from the provisions of compulsory licensing under the Industries (Development and Regulation) Act, 1951.
  2. With effect from 24.5.92, Iron and Steel industry has been included in the list of `high priority' industries for automatic approval for foreign equity investment upto 51%. This limit has been recently increased to 100%.
  3. Price and distribution of steel were deregulated from January 1992. At the same time, it was ensured that priority continued to be accorded for meeting the requirements of small scale industries, exporters of engineering goods and North Eastern Region of the country, besides strategic sectors such as Defence and Railways.
  4. The trade policy has been liberalised and import and export of iron and steel is freely allowed. There are no quantitative restrictions on import of iron and steel items, covered under Chapter No. 72 of the ITC(HS) Code. The only mechanism regulating the imports is the tariff mechanism. Tariffs on various items of iron and steel have drastically come down since 1991-92 levels and the government is committed to bring them down to the international levels. In Chapter 72 there are two items viz. 72042110 and 72042910, which fall in the restricted list of imports.
  5. Iron & Steel are freely importable as per the Extant Policy.
  6. Iron & Steel are freely exportable.
  7. Advance Licensing Scheme allows duty free import of raw materials for exports.
  8. The floor price for seconds and defectives continues till date.
  9. Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai, Calcutta and Chennai.
  10. Mandatory pre inspection certificate by a reputed international agency for every import consignment of seconds and defectives
  11. In the union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20% to 10%

Manganese Ore

Policy for export of Manganese Ore(Extract from Exim Policy of DGFT) is as under :
Tariff Item HS Code Unit Item Description Export Policy Nature of Restriction
2602 00 00   Kg Manganese Ore excluding the following : Lumpy/blended Manganese Ore with more than 46% Manganese STE Export through (a) MMTC Limited (b) Manganese Ore India Ltd. (MOIL) for Manganese Ore produced in MOIL mines.
2602 00 10 Kg Lumpy/blended Manganese Ore with more than 46% Manganese Restricted Export pemitted under licence.

(Source : Foreign Trade Policy, DGFT)

EXPORT POLICY FOR IRON ORE

  • Exports of iron ore up to 64% Fe content is freely allowed.
  • Export of iron ore of Goa origin to China, Europe, Japan, South Korea and Taiwan (irrespective of Fe content) and export of iron ore from Redi region to all markets (irrespective of Fe content) is also freely allowed.
  • The export of iron ore with Fe content above 64% is canalized through MMTC.
  • KIOCL is the canalizing agency for its own products (iron ore concentrates and iron ore pellets) since it is a 100% E.O.U (export oriented unit).
  • High-grade iron ore (Fe content above 64%) from Bailadila in Chhattisgarh is allowed to be exported with restrictions on quantity imposed primarily, with a view to meet domestic demand on priority. Present quantitative ceiling of iron ore in operation, is as under:
    Present quantitative ceiling of iron ore in operation
    AREA ANNUAL QUANTITY( In million tonnes)
    a) Bailadila Lumps Not exceeding 3.0 Million Tonne
    b) Bailadila Fines Not exceeding 3.8 Million Tonne
  • In addition to the above, export of iron ore of above 64% Fe content is also allowed against licenses issued by DGFT.

Chromite Ore

Policy for export of Chrome Ore (Extract from Exim Policy of DGFT) is as under
Tariff Item HS Code Unit Item Description Export Policy Nature of Restriction
2610 00 00 Kg Chrome ore other than (i) beneficiated chrome ore fines/concentrates (maximum feed grade to be less than 42% Cr2O3) and (ii) those categories of Chrome Ore mentioned as permitted through STEs. Restricted Export permitted under licence other than categories at (b) to (d) below
2610 00 30

2610 00 40
Kg Beneficated chrome ore fines/concentrates (maximum feed grade to be less than 42% Cr2O3) Free  
2610 00 30 Kg Chrome Ore lumps with Cr2O3 not exceeding 40 percent STE Export through MMTC Limited
2610 00 90 Kg Low silica friable/fine ore with Cr2O3 not exceeding 52 percent and Silica exceeding 4 percent. STE Export through MMTC Limited
2610 00 90 Kg Low silica friable/fine chromite ore with Cr2O3 in the range of 52-54 percent and Silica exceeding 4 percent. STE Export through MMTC Limited

(Source : Foreign Trade Policy, DGFT)

Assistance being provided by Ministry of Steel to Private Sector

In order to ensure raw material supplies to the Iron and Steel Industry and for the growth of Iron and Steel Sector in the Country, Ministry of Steel take up their issues with the other concerned Ministries/ Departments such as;

  1. Taking up the matter with Ministry of Coal for allocation of Coal Blocks and Coal Linkages to Iron and Steel Industry
  2. Taking up the matter with the Ministry of Petroleum & Natural Gas for supply of Natural Gas to Iron and Steel Industry
  3. Taking up the matter / concerns of Iron and Steel Industry with various other concerned Ministries / Departments.