UAE Steel Manufacturers Demand Crackdown On Illegal Steel Scrap Imports To India, Citing Fraudulent Documentation

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UAE based Steel Manufacturing companies have filed written complaints to the Indian customs authorities about the illegal imports of steel scrap from the UAE into India citing concerns over alleged falsified documentation and evasion of export fees. UAE based Steel Manufacturing companies have urged the Indian Government to take immediate and stringent action and stop the illegal import of the steel scrap from UAE.

In a letter exclusively accessed by ZEE, the companies claimed that certain shippers are allegedly
smuggling steel scrap into India. The material is not only being shipped to India under falsified documents but also results in the loss of revenue to the Indian customs authorities. It also poses the risk of any commodity entering into the country by these illegal methods.

The companies have submitted information relating to such illegal imports into India. The companies have highlighted certain violations which include changed Bill of lading, wrong declaration of the country of origin and the port of loading, false Certificate of Origin, false Pre-Shipment Inspection
Certificate (PSIC).

UAE and India have an excellent trade relationship under the auspices of the Comprehensive Economic Partnership Agreement (CEPA) signed between the two countries.

"The steel scrap shipments have originated illegally from the UAE by evasion of the export duty payable on such exports through falsification of the trade documents which is a serious violation of the CEPA and the international maritime law. We urge your good offices to take immediate action to stop this STEEL SCRAP imports into India which has originated illegally from the UAE,” the letter addressed to Surjit Bhujbal, a member of the Central Board of Indirect Taxes in Indian stated.

UAE’s federal authorities recently imposed an export fee of AED 400 per metric ton on industrial waste, including steel scrap as part of a new waste management policy. The UAE based steel manufacturers have claimed that some shippers are circumventing these fees by generating fraudulent bills of lading which include creating separate documents for UAE and Indian customs, misrepresenting the port of origin and evade regulations.

The companies also identified various tactics being used including incorrect HS code declarations and counterfeit Certificates of Origin. Highlighting the strong bilateral relationship between the UAE and India, the UAE based steel manufacturers emphasised the need for vigilance. The companies referenced the Comprehensive Economic Partnership Agreement (CEPA) signed between the two nations in May 2022 which aims to enhance trade and investment cooperation.

Until the news is published, CBIT has declined to comment on the story.