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Introduction: The Government of India, Ministry of Commerce and Industry, Department of Commerce, through Public Notice No. 45/2023 – DGFT, dated 28th February 2024, has introduced crucial amendments to Standard Input Output Norms (SION) C-831. These changes specifically impact the export of Stainless Steel Seamless Tubes/Pipes with a Cold Finish.

Detailed Analysis:

1. Authority and Power: The amendments are executed under the powers conferred by Paragraph 1.03 and 2.04 of the Foreign Trade Policy 2023, showcasing the Directorate General of Foreign Trade’s authority.

2. Nature of Amendments: SION C-831 now mandates exporting 1 MT of Stainless Steel Seamless Tubes/Pipes (Cold Finish) against an import of 1.10 MT of Seamless Stainless-Steel Tubes/Pipes (Hot Finished).

3. Specifications and Conditions: Noteworthy specifications include the requirement for hot-finished/mother hollow import with an OD not less than 65mm. Additionally, exporters must specify the grade of imported pipes, aligning with the grade of export pipes.

4. Weight Restrictions: A significant restriction is imposed on the export weight per meter of cold-finished pipes/tubes, capped at 50% of the weight per meter of the imported hot-finished/mother hollow used as an input.

5. Pre-Import Condition: The issuance of duty-free licenses is now subject to a pre-import condition, ensuring compliance with the new norms.

DGFT amends SION C-831 for Stainless Steel Export

Conclusion: The immediate effect of Public Notice No. 45/2023 is the amendment of SION C-831, impacting the export dynamics of Stainless Steel Seamless Tubes/Pipes with a Cold Finish. Stakeholders in the steel industry must promptly adapt to these changes, considering the nuanced specifications and conditions laid out by the Directorate General of Foreign Trade. The amendments aim to streamline and regulate the export process, ensuring adherence to international trade policies and standards. Exporters and importers should thoroughly review and implement these changes to avoid any disruptions in their operations.

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GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
DEPARTMENT OF COMMERCE

Public Notice No. 45/2023 – DGFT | Dated 28th February, 2024

Subject: Amendments in Standard Input Output Norms (SION) C-831 for export of Stainless Steel Seamless Tubes/ Pipes (Cold Finished)

F. No. -01/81/162/00002/AM22/DES-II.—In exercise of powers conferred under Paragraph 1.03 and 2.04 of the Foreign Trade Policy 2023, as amended from time to time, the Director General of Foreign Trade makes the following amendments in Standard Input Output Norms (SION) C­831 for export of Stainless Steel Seamless Pipes/ Tubes (Cold Finish):

SI No Export Item Quantity Item of import Quantity
1 Stainless Steel Seamless Tubes/Pipes (Cold Finish) 1 MT Seamless Stainless‑ Steel Tubes/Pipes (Hot Finished) 1.10 MT

Note:

1. The imported seamless stainless-steel pipe/tubes shall be hot-finished/ mother hollow having an outside diameter (OD) not less than 65mm and above.

2. Exporters have to provide a specific grade of pipes to be imported as input and such grade must correspond with the grade of export pipes/tubes.

3. The export weight per meter of cold-finished pipes/tubes shall not exceed 50% of the weight per meter of imported hot-finished / mother hollow consumed as an input to produce the cold finish pipe/tube for export.

4. Pre-Import condition shall be mandatory while issuing the duty-free licenses.

2. Effect of this Public Notice:

Standard Input Output Norms (SION) appearing under C-831 is amended as above with immediate effect.

(Santosh Kumar Sarangi)
Director General of Foreign Trade
Ex-officio Additional Secretary to the Government of India
Email- dgft@nic.in

(Issued from File No.-01/81/162/00002/AM22/DES-II)

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