Illogical Fixing of Tariff Value for Brass Scrap - Jamnagar Chamber Of Commerce protests
Jamnagar is having approximately 4000 small brass parts manufacturing units. Their major source of raw material of brass is brass scrap which is imported. Import duty levied on brass scrap is on tariff rates and CBEC is deciding those tariff rates frequently.
The Jamnagar Chamber of commerce and Industry has submitted a representation to the Prime Minister that “internationally the price of brass scrap is approximately 1800 USD even though till 15/12/2008 the import duty was payable on import of brass scrap is at 3525 USD per MT with effect from 17.11.2008. However surprisingly and shockingly CBEC has revised the rates upward from 3525 USD to 4082 USD per MT as per non tariff notification dated 15.12.2008.
We are really shocked to say that at present the customs duty payable by importer on tariff price of 4082 USD Per MT when Internationally those goods are available at price of 1800 USD per MT. This shows that duty is payable 2.5 times more than what should have been payable at transaction price.”
In view of above, the Chamber submitted that, “fixation of brass tariff rates in such a fashion which is Illogical, shocking and would be death knell in units solely based on import of this raw material. Therefore we request you to kindly revise downward this tariff rates linked with international rates.”
The Chamber also requested the PM to kindly provide us the basis on which the tariff of brass scrap is fixed.
In , 17-10-2005, we had explained how tariff values are fixed.