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BIR urges Indian Government against import tax

International recycling federation the Bureau of International Recycling has urged the Indian Government not to implement the proposed import duty on aluminium scrap in India.

It is claimed the Aluminium Association of India filed the application, which is likely to charge a 10 to 20 per cent tax.

The BIR has sent letters to the Indian Commerce Secretary of Government, the Revenue Secretary of Government and the Safeguards Director General urging them not to implement the import duty. BIR emphasised the importance of preserving free trade with secondary raw materials such as aluminium scrap.

A statement released by the BIR said: If our plea should not be taken into consideration by the Indian authorities, the international federation intends to bring the issue to the attention of the World Trade Organisation, via the EU Commissions DG Trade, which has been informed of BIRs initiative.

In the letters BIR has also highlighted the environmental benefits of using scrap rather than producing primary materials and the crucial role aluminium plays for secondary scrap smelters which supply the car industry - a major export market for India. BIR has warned against the long-term affects of restricting the import industry with the possible tax and this could result in scrap shortages for domestic Indian recyclers and smelters.

Senior BIR members arranged a meeting with the Indian Ministry of Environment and Forests, the Directorate General of Foreign Trade and the Ministry of Steel to try to avoid the Governments restrictive measures on secondary material import regulations. The Government wants to add further import regulations to ensure hazardous material is not imported into the country.

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