AAI Recommends Lower Customs Duty on Critical Raw Materials

SEATTLE (Scrap Monster): The Aluminum Association of India (AAI) has urged government authorities to cut basic customs duty on critical raw materials, so as to reduce the cost of Indian finished aluminium goods, thereby making them competitive in international markets.

In its recommendations to the Union government before the proposed Budget 2020, the association demanded reduction of basic customs duty on raw materials such as aluminium fluoride, caustic soda lye and green anode/pre-baked carbon anode from current levels of 7.5% to as low as 2.5%. It noted that the domestic aluminium producers in the country depend mainly on imports for their raw material needs.

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Simultaneously, AAI demanded the government to raise import duty on aluminium scrap from 2.5% to 10%, to be at par with import duty on primary aluminium. Such a move will boost domestic scrap recycling and lead to severe cut in imports of scrap from foreign countries, AAI noted. The restricted scrap imports will help to save huge forex outgo, added AAI.