Government Announces Six-Month Import Restrictions on Low Ash Metallurgical Coke from Multiple Countries

The government has announced a six-month restriction on importing low ash metallurgical coke. This measure will be in effect from January 1 to June 30, 2025. The Directorate General of Foreign Trade (DGFT) stated that imports would require authorisation for specific countries during this period. High ash coke, with more than 18% ash content, is exempt from these restrictions.

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Import Quotas and Country-Specific Limits

Quantitative restrictions (QR) have been set for imports from several countries, including Australia, China, and Japan. The quotas are as follows: Australia is limited to 51,276 tonnes, China to 78,646 tonnes, and Japan to 209,980 tonnes. Other countries like Poland and Russia have limits of 506,336 tonnes and 89,182 tonnes respectively. These quotas apply for two quarters next year.

The DGFT notification specifies that imports will only be allowed through electronic data interchange (EDI) ports. This ensures real-time monitoring of the allocated quota. The QR will be reviewed quarterly to ensure imports do not exceed the set limits. Applications for import authorisation can be submitted on the DGFT website.

Impact on Import Levels

Think tank GTRI highlighted that the quota system will significantly reduce imports compared to the actual figures from 2023-24. For example, the annual quota permits only 67.6% of Australia's actual imports and just 28% of China's. Ajay Srivastava from GTRI noted that Indonesia's quota is only 21.4% of its previous imports.

The restrictions are based on recommendations by the Directorate General of Trade Remedies (DGTR) made in April this year. The country-specific QR will automatically end on June 30, 2025. If necessary, further procedures for obtaining import authorisation will be announced separately.

These measures aim to regulate the import of low ash metallurgical coke effectively. By imposing these restrictions, the government seeks to manage trade balances and protect domestic industries from excessive foreign competition during this period.