AAI demands immediate implementation of a 10% customs duty on imported aluminium scrap

The Aluminium Association of India has reportedly asked for the immediate implementation of a 10 per cent customs duty on aluminium scrap imports to safeguard the domestic metal industry from low-quality scrap dumping.

According to the apex body representing aluminium producers, the current 2.5 per cent customs duty on aluminium scrap has led to a rise in overall aluminium imports by 24 per cent from the previous financial year, resulting in a forex outgo of US$7 billion or INR 56,291 crore.

The Aluminium Association of India (AAI) has pointed out that India has emerged as the dumping ground of foreign scrap. “Given that foreign scrap is not governed by quality standards, it presents significant safety and environmental risks. In response, AAI has sought a duty of 10 per cent on scrap imports as a strong deterrent against dumping,” said AAI.

AAI has also sought a correction in duties on primary aluminium imports, claiming that tariffs should be increased to 10-15 per cent to prevent foreign countries from disposing of their products in India. The association also said the Remission of Duties or Taxes on Export Product (RoDTEP) scheme, designed to encourage high-quality exports from India, would stimulate domestic producers to increase indigenous manufacturing.

Recently, AAI has requested the government to provide RoDTEP rates for aluminium from special economic zones and export oriented units (EOUs), stating that over 30 per cent of all aluminium exports is from Special Economic Zones and Export Oriented Units.

AAI has also sought a reduction of custom duties on crucial materials to 2.5 per cent to minimise the production cost of aluminium and boost the industry’s cost competitiveness.