19 Jan 2019Posted By: Mudit Handa

Government to Raise Import Duties on Iron Ore

The government has always aimed to counterbalance the factors adverse to the domestic as well as foreign trade by introducing key changes in tariffs as well as duties.

  • In an effort to minimize the current account deficit (CAD), the government on 26th September 2018 had hiked the basic customs duty on 19 items that were classified as “non-core goods”.
  • Some of them were electronic appliances such as air conditioners and washing machines.
  • The noteworthy fact was that basic customs duty was once again introduced on ATF (aviation turbine fuel).
  • The government now is planning to raise the import duties on iron ore. The iron ore serves as a key raw material in many industries including iron smelting and steel making. The government has taken this measure with an aim to safeguard the domestic industry, according to the sources. The government has predicted that this would benefit the indigenous steel manufacturers having the unique Import Export Code, who wish to expand their business overseas.  


#1. Why has import duty been raised on iron ore?

  • The chief minister of Karnataka H D Kumaraswamy has recently written to the Centre regarding challenges faced by the Karnataka state iron ore industries.
  • Right now, the import duty is very low on iron ore. It is 2.5%. This is motivating the steel traders & manufacturers to import rather than procuring the local iron ore.
  • He had clearly stated that the major steel companies in the state are currently heavily importing iron ore from abroad.
  • This comes at a time when India is facing the huge problem of increasing balance of trade deficit.
  • The chief minister has thus, sought prime minister's interference, and has requested to suitably increasing the import duty on the iron ore and its pellets as to tackle the situation.


#2. Whether the industry has urged the government to raise import duty?

  • Yes. The apex mineral authority, Federation of Indian Mineral Industries (FIMI) had also pressurized the government to take urgent measures to promote exports in indigenous iron ore from Karnataka and nationwide.
  • Besides, they had emphasized on import substitution by raising the import duty on iron ore and its pellets to 30% in to bring down imports.


#3. How will the government encourage exports of iron ore?

  • On the other hand, the government is also focussing on export promotion.
  • It is planning to reduce the export duty on iron ore. The Ministry of commerce and industry has raised the views concerning the steel and mining ministry regarding this issue.
  • During the fiscal year 2017-18, the total Iron ore exports had slumped to US$ 1.47 billion from US$ 1.53 billion.
  • Bringing down the export duty on iron ore will further encourage the exporters and manufacturers having the unique Import Export Code to export more iron ore and finished goods.
  • This will ultimately boost the domestic market and will bring down the trade deficit.


#4. Why is Import Export Code important?

No doubt, an Import Export Code registration is crucial for conducting trade in the global market.

  • Import Export Code, which is commonly abbreviated as IEC is the first registration needed for the business entity dealing in Importing or exporting of goods from India.
  • The apex body that gives IEC registration is the Directorate General of Foreign Trade (DGFT).
  • Import Export Code is a passport for beginning import and export trade from India.
  • Applying for a unique Import Export Code is just a one-time process that does not need any renewal. Therefore, Import Export Code continues for a Lifetime.

In case you need any assistance related to Import Export Code, feel free to contact us at 8881-069-069.


Now you can also Download E-Startup Mobile App and Never miss the latest updates relating to your business.

Give a Reply

Fill up the form

E-startupIndia Mobile App


Download our free Android App and get realtime update on your order status.
Easily connect with our professionals handling your order over chat & mobile.
Never miss business compliances due date with advance notifications.

Get E-startupIndia in your mobile

Why Choose Us

e-startupindia member of GOOGLE

Serving business owners with an Average 4.8+ Google Rating.

e-startupindia certified #AxixBank

Trusted by Axis bank to cater its clients all licensing & compliance needs.

e-startupindia NG Alliance Partner

Providing lending solutions for business needs with NeoGrowth.

e-startupindia Google Partner

Open Neo bank account worldwide & provides cross-border remittance solutions.

e-startupindia member of CII

E-startupindia is a Proudly Member of Confederation of Indian Industry.The CII is a premier business association in India which works to create an environment.

e-startupindia certified #Etstartupindia

E-Startup India is duly certified under GOI's Startup India scheme and is renowned for our tech-driven solutions for business & legal services requirements for MSMEs.

e-startupindia Google Partner

E-Startup India is a Google Partner, which implies we are rigorously involved in assisting SME businesses to market their presence in the digital world.

Popular Services

Private Limited Company | Public Limited Company | One Person Company | Limited Liability Partnership | Partnership Firm | Sole Proprietorship Firm | Section 8 Company Registration | USA Company Registration | UK Company Registration | UAE Company Registration | Singapore Company Registration | Company Registration Hong Kong | Import Export Code | IEC Modification | AD Code Registration | Spice Board Registration | US FDA Certification | ISO 9001 2015 | ISO 14001 EMS | ISO 22000 FSMS | ISO 27001 ISMS | ISO 50001 Energy Management | ISO 45001 | ISO Surveillance | ISO Certification | MSME Registration | FSSAI Registration | Shop Establishment Registration | Barcode Registration | Coffee Board Registration | Startup India Certificate | ZED Certification | Trademark | Trademark Objection Reply | Trademark Opposition | Trademark Hearing | Trademark Formality Check Fail | Website Development | Patent | Copyright | Design Registration | Business Name Suggestion | Logo Designing | Trademark Assignment Service | GST Registration | GST Modification | GST Cancellation | GST Return Filing | GST Invoice Software | UIN Registration | Income Tax Return | Income Tax Notice | Income Tax Refund | Income Tax Assessment | TDS Return Filing | Form 15CA / CB | Professional Tax Registration | 12A and 80G Registration | FCRA Registration | CSR Registration | Project Report | Pitch Deck | Seed Fund Startup India | Accounting for Ecommerce | Virtual cfo services in india | Bookkeeping & Accounting | Private limited Company Annual Compliance | Form INC-22A | Form 15CA / CB | Company Strike Off | Commencement of Business | Fssai annual return | Online CA Consultancy | Income Tax Return Filling | LLP Annual Compliances | Form DIR-3 KYC | Virtual Office for Company Registration |


  • e-startupindia South Asia's Leading Multimedia News Agency
  • Business Standard
  • e-startupindia Outlook
  • e-startupindia Htmedia
  • e-startupindia Yahoo News
  • e-startupindia New Delhi Times
  • e-startupindia India.com
  • e-startupindia IBTN9