The Bombay Metal Exchange (BME) has sought a further reduction in the tariff value of brass scrap as trade and industry feel that it was higher compared to international prices. The exchange has strongly taken up the case with the government regarding the discrepancy in the fixation of tariff value of brass scrap. The government has so far reduced tariff value from $4,082 a tonne to $3,252 per tonne, but industry players believe that it is still higher as compared to the prices of virgin metals prevailing in the international market.
?We are interested to know the formula for deriving the tariff value for import of brass scrap (decided earlier at $4,082 per ton) as against the price for prime or virgin copper which is at $3,074 per tonne,? Rohit Shah, director, BME told FE. The exchange had sought the information regarding the tariff-value formula through the Right to Information Act (RTI) route, but the department has failed to understand the requirements of trade and industry, he said.
?We have again request the government to reveal the formula for calculating the price of scrap otherwise, we will have no option but to move to the court for justice,? he said.
Brass scrap tariff value should range between 50% and 60% of the copper price prevailing in the London Metal Exchange (LME), he suggested.