Financial Daily from THE HINDU group of publications
Wednesday, Dec 24, 2003
Financial Daily from THE HINDU group of publications Wednesday, Dec 24, 2003 |
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Industry & Economy
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Granite & Marble Cheap Sri Lankan imports irk domestic marble industry Our Bureau
Mumbai , Dec. 23 LARGE-SCALE cheap imports of rough marble blocks/slabs into the country from Sri Lanka have put the domestic marble processing industry into serious trouble. Such goods come into the country at a zero duty under the Free Trade Agreement between Indo-Sri Lanka signed in 2000 (ISFTA) as against 51 per cent levied on such imports from China, European Countries, Italy, and Spain. The Custom Notification No. 26/2000 (NT) dated 1/3/2000 has clearly set out the determination of origin of goods under the ISFTA. "Around 30 containers load of marble slabs are coming everyday into various Indian ports from Sri Lanka," a leading marble processor said. "Such goods worth of Rs 200 crore are likely to land from Sri Lanka within next three months (January/March) using this system that will flood the market throwing the local industry out of gear," he said. Landing cost of imported rough marble blocks from Sri Lanka route works out approximately to $179 a tonne, whereas the same goods imported from other countries works out to $300/320 a tonne (cost and freight) Mumbai. As per the prevailing Exim policy, the imports of rough marble are under the category of restricted items and the import license available on the basis of past performance to the importers. Such official imports attract duty of 51 per cent. "The modus operandi is very simple. The unscrupulous importer gets a certificate pertaining to `Origin of Sri Lanka' from the Sri Lankan authorities. There are no marble mines located in Sri Lanka, which can produce such marble/slabs. They set up a small processing unit/facilities (for eyewash). Sri Lanka imports such marble slabs mostly from the European countries (including Italy) and re-export them into India," Mr Shankar Singh Sisodia, Chairman, Mahadev Marmo Ltd and Vice-President of Rajasthani Khanij Udyog Mahasangh, said. "The Customs authorities are granting exemption mechanically only on the basis of Certificate of Origin issued by the Sri Lankan authorities without critically examining whether the conditions regarding proof of country of origin as specified in the Customs Tariff Rules 2000 are complied with," trade sources said.
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