Steel Industry – Current challenges, National Steel Policy 2017, etc

New steel import duty to prevent hawala

  1. Context: Commerce ministry has asked finance ministry to seize the price differential between minimum and the actual import price
  2. Why? The differential between the minimum and actual import prices may fuel inflow of black money
  3. How? Since the MIP is higher than the import price of steel, it is apprehended that bulk importers may over-invoice imports and transfer the price differential to India through the hawala route
  4. Background: Govt had announced the MIP for 173 steel products to curb the dumping of cheap steel by countries such as China, Russia, Japan and South Korea

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