India to require advance notice of steel imports

India's commerce ministry has introduced a new steel import monitoring system that requires importers to give detailed advance information about their shipments. The new requirements may slow the import process and pave the way for a possible quota system to be imposed in the future.

The new system, which will take effect on 1 November, requires importers to pay 5,000-100,000 rupees ($70-1,400) to register their shipments. Importers must register 15-60 days before the expected date of arrival.

The commerce ministry has released an extensive list of HS codes under chapters 72, 73 and 86 that will be affected, covering most flat and long steel products.

"This will add another level of bureaucracy to the trade process," said a Mumbai-based sales manager at a Japanese trading company.

The monitoring system could also help the government collect and analyse import data in preparation for a quota system, such as the one in place in the EU, he said. That was echoed by a Mumbai-based steel trader, who said the new system could spill into the creation of import quotas that would create a non-tariff barrier for steel imports.

Delhi has no plans to reduce or restrict steel imports, a steel ministry official said. The monitoring system will allow government to keep an up-to-date record of import volumes, which is currently compiled with a lag of 2-3 months.

The government currently lacks detailed data on grades of imported steel, intended use and prices.

India imported 3.35mn t of steel in April-August, the first five months of its financial year, up by 0.8pc from a year earlier.