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Import naphtha, PVC among items entitled to lower import duties to IndiaImport naphtha, PVC among items entitled to lower import duties to India |
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The Indian government has taken steps to ease the rising cost pressure on the local industries by cutting import duties on several key raw materials and intermediates, including naphtha and PVC.
Import duties on three key raw materials of steel are now zerorised, while three raw materials of plastic products see substantial reductions in tariffs.
|
No. |
Product |
HS Code |
From (%) |
To (%) |
|
1 |
A. Anthracite/pulverized Coal injection (PCI) coal B. Coking Coal |
2701 |
2.5% (including AIDC) |
NIL |
|
2 |
Coke and semi-coke |
2704 |
5% |
NIL |
|
3 |
Ferronickel |
7202 |
2.5% |
NIL |
|
4 |
Naphtha |
2710 |
2.5% |
1% |
|
5 |
Propylene Oxide |
2910 20 00 |
5% |
2.5% |
|
6 |
Polymers Of Vinyl Chloride (PVC) |
3904 |
10% |
7.5% |
India consumes about 3.2 million tons of PVC per annum and at the moment, local productions only met 46.8% of the demand. Over the past years, the Indian government constantly lifted import tariffs on PVC to encourage local production expansion, however, the country adds no new capacities, at least over the past five years.
In February 2022, India demolished the anti-dumping duties imposed on import PVC from several countries, allowing manufacturers to access to more competitive sources of raw materials.
Responding to the latest development, a major domestic producer slashed spot PVC offers by INR10,000/ton ($128/ton) while introducing a fresh round of price protection until 1 June or the next price change, whichever comes first. Indian customers remain cautious about the market outlook, refraining from building stocks amid growing expectations for further price declines ahead.
Country
India
