Intro Paragraph:
The import curbs on metallurgical coke—a key raw material for steelmaking—might be extended. The Ministry of Steel has backed continued restrictions to shield Indian manufacturers from unfair pricing and dumping by foreign players. This move is likely to impact importers, steel producers, and GST compliance for related businesses.
Why the Import Curbs Were Imposed in the First Place
- Metallurgical coke is vital for blast furnace operations in the steel sector.
- India relies heavily on imports from countries like China and Australia.
- In recent years, cheaper imports have led to undercutting of domestic suppliers.
- The Directorate General of Trade Remedies (DGTR) had earlier initiated anti-dumping probes.
- In 2021, the government imposed quality control norms under the Steel Import Monitoring System (SIMS).
Steel Ministry’s Stand on the Extension
According to official sources:
- The Ministry of Steel has conveyed its view to the Department of Commerce.
- It seeks a continuation of existing curbs under the Foreign Trade Policy framework.
- The key concern: surge in low-grade imports impacting local coke manufacturers.
- Also flagged: disruption in cost structures for domestic steel producers.
✅ Govt Source: DGFT’s Notification No. 12/2025-26 amends the Foreign Trade Policy to monitor key steel and coke imports (refer Para 4.41(5))
🔗 dgft.gov.in – Notification archive
What It Means for Indian Businesses
If the curbs continue:
| Impacted Stakeholder | Implication |
|---|---|
| Steel Plants | May benefit from stabilised raw material costs |
| Importers | Will require BIS clearance or SIMS registration |
| MSMEs Using Coke | May face supply bottlenecks or price fluctuations |
| Customs & GST Filers | Must monitor correct classification under HSN 2704 for ITC eligibility |
🧾 HSN Code Reference: Metallurgical Coke falls under HSN 2704, and its imports invoke IGST and customs procedures.
Legal & Trade Angle
- FTP Sections 3 & 5 empower DGFT to notify such restrictions.
- SC in Shree Bhagwati Steel vs Union of India upheld policy-driven import limits as constitutionally valid.
- Taxpayers must ensure classification aligns with notifications to claim Input Tax Credit (ITC) without disputes.
Expert Insight
“Extension of import curbs is not just about trade protection. It stabilises the cost base for India’s core industries,”
— CA Anirudh Kumar, Indirect Tax Consultant
He adds that businesses should proactively reassess their vendor contracts and customs clearance documentation if sourcing metallurgical coke.
How to Stay Compliant
Here’s a checklist if you deal with metallurgical coke:
- ✅ Check updated DGFT notifications regularly
- ✅ Ensure SIMS registration before placing import orders
- ✅ Review BIS marking requirements
- ✅ Map your ITC claims with accurate HSN codes
- ✅ Maintain clear customs documentation for audit trail
Internal Compliance Tip
🧠 Read: GST on raw material imports and Input Tax Credit eligibility
Summary
Steel Ministry supports extending import curbs on metallurgical coke to protect Indian steelmakers. Impacts importers, GST compliance, and trade regulations.
FAQ Section
Q1: What is metallurgical coke used for?
A: It’s a carbon-rich material used in blast furnaces to produce steel.
Q2: Will importers need BIS certification?
A: Yes, if the import curbs extend, BIS norms and SIMS registration will likely remain mandatory.
Q3: How do these curbs impact GST compliance?
A: Importers must ensure correct HSN classification and documentation to claim Input Tax Credit.