Export Duty on Iron Ore - Steel Lobby vs Ore Lobby; Steel wins:
THE Notifications were issued on 24th December and as DDT would appear only after four days, we carried a story on the issue on 25th December in our Breaking News - Export Duty on Iron Ore levied .
To recap the issue briefly:-
By Notification No. , dated the 7th December, 2008, iron ore fines falling under Heading No. 11 of the Second Schedule to the Customs Tariff Act, were exempted from the whole of Customs Duty.
By Notification No. , dated the 13th June, 2008, a 5% effective duty was fixed on iron ores and concentrates, all sorts (except iron ore fines), falling under Heading No. 11 of the Second Schedule to the Customs Tariff Act, 1975.
What is done Now:
1. Notification No. , dated the 7th December, 2008, is rescinded - NOTIFICATION NO. Dated: December 24, 2009
2. A 5% effective rate (instead of nil) is prescribed for iron ore fines falling under Heading No. 11 of the Second Schedule to the Customs Tariff Act - NOTIFICATION NO. Dated: December 24, 2009
3. Notification No. , dated the 13th June, 2008, is amended to make the effective rate 10% (instead of 5%) for iron ores and concentrates, all sorts (except iron ore fines) - NOTIFICATION NO. Dated: December 24, 2009
In effect the effective rate of duty on iron ore fines is 5% (instead of nil) and on iron ores and concentrates, is 10% (instead of 5%).