India Proposes Quota on Coking Coal Imports
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India has proposed implementing a quota on the import of metallurgical coking coal from major supplying countries.
A government notice revealed that Indian companies filed applications in April 2023, citing a surge in coking coal imports that harmed the domestic sector.
The product in question is low-ash metallurgical coking coal, classified under HS code 2704, with an ash content below 18%. It excludes fine coke, breeze coke, and coking coal with extremely low phosphorus content of up to 0.030%.
After thorough investigation, the regulatory body concluded that the sudden influx of low-ash coking coal imports posed a severe threat to India's domestic industry.
Therefore, they recommended imposing quantity restrictions in the form of quarterly quotas on these imports for one year to mitigate further damage. However, the implementation date is yet to be determined.
This recommendation aligns with WTO guidelines on safeguard measures and attributes the industry's harm to the surge in imports. Additionally, it exempts certain imports from developing countries based on specific criteria.
The quota targets key exporters to India, including Australia, China, Colombia, Indonesia, Japan, Poland, and Russia, reflecting their significant contributions to India's coking coal imports in recent years. Each origin will receive its own quarterly quota, and any unused quota will be transferable. This strategy aims to facilitate smooth volume transactions for both exporters and importers.
Responding to this news, an industry participant from a reputable trading company stated: "The effective date for these quotas has not been announced, and with 2-3 coking coal ships arriving in the next two months, we are unsure if they will proceed. This is just an announcement, and we are uncertain about the actual implementation date, which leaves us in doubt. However, it will be temporary as the government ensures that Indian steel mills get raw materials at competitive prices."
India's coking coal imports increased by 47% from 2020 to 2023, reaching 3.83 million tonnes. According to customs data, most of these imports came from Poland, China, Colombia, and Indonesia.
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