The Delhi High Court bench comprising of Chief Justice G Rohini and Justice Jayant Nath had issued notice to the Centre on a plea by a group of Steel importers [STEEL WIRES MANUFACTURERS ASSOCIATION OF INDIA Vs. UNION OF INDIA & ORS – W.P.(C) 2244/2016] against the government’s minimum import price (MIP) on 173 steel products aimed at providing relief to local steel producers hurt by cheap imports.
The Court sought responses within two weeks from the Director-General of Foreign Trade (DGFT), Ministry of Commerce and Ministry of Finance.
In February through a notification, the government has imposed a minimum import price (MIP) ranging from $341 to $752 per tonne on 173 steel products to provide relief to local steelmakers hurt by an increase in cheap imports of these items.
The petition has questioned the jurisdiction of DGFT which issued a notification on 5 February imposing MIP on 173 steel products ranging between $341 and $752 per tonne.
“Internationally, the prices of steel are low and the MIP under the notification is relatively higher. If I import steel under the MIP, I will be caught under the web of Foreign Exchange Management Act (FEMA), 1999 and other regulations,” the lawyer for the association reportedly told to the court.
The MIP, which will remain in place for six months, was welcomed by steel producers but opposed by steel users as it was bound to adversely affect the price of the raw material.
