Govt orders quality checks on Chinese steel

By: |
New Delhi | Published: November 17, 2014 9:13:28 AM

The finance ministry has directed that importers of Chinese steel products have to secure certification by the BIS.

Chinese steel products like thermo-mechanically treated (TMT) bars are used extensively by the realty sector in India.Chinese steel products like thermo-mechanically treated (TMT) bars are used extensively by the realty sector in India.

Acting on Prime Minister Narendra Modi’s directive to curb needless imports, the finance ministry has directed that specific Chinese steel products must be subjected to stringent quality checks before allowing them to enter the country’s hinterland.

In an order issued to the Central Board of Excise and Customs (CBEC) on November 7, the finance ministry has said that Indian importers buying Chinese steel products like thermo-mechanically treated (TMT) bars, used extensively by the realty sector, will henceforth have to compulsorily secure certification by the Bureau of Indian Standards (BIS) at all entry points to the country.

The move is specifically aimed at Chinese steel makers exporting steel by adding boron in their product mix to bypass the defined quality standards of the steel ministry’s Quality Control Order 2012 and the commerce ministry’s import duty classification.

The Indian Express had reported on September 18 that steel ministry had expressed serious concerns over the burgeoning steel imports from China which during the second quarter of 2014-15 exceeded “the historic (quarterly) high” of 90 million tonnes.

The Indian Steel Association (ISA), the newly created umbrella body of the country’s leading steel companies, has written to the government on November 4 cautioning that imports of hot rolled coils, sheets and plates are up by 41 per cent in the first half of the current fiscal of which imports from China amounts to 111 per cent.

Of the total imports Boron added steel accounted for 80 per cent imports from China. Imports of colour coated steel from China has surged by 117 per cent in the first half of this fiscal, while wire rod imports have shot up by 110 per cent, the ISA said in its letter.

IMPORT CURBS

* The finance ministry has directed that importers of Chinese steel products have to secure certification by the BIS
* The move aimed at Chinese steel makers exporting steel by allegedly adding boron in their product mix to bypass the steel ministry’s quality standards and import duty classification

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition
FinancialExpress_1x1_Imp_Desktop