India secures 2.8 million tonnes European Union steel quota: Official

India has received country-specific tariff-rate quota of 1.9 million tonne (MT) annually for steel exports to the European Union while the government expects exporters to secure another 0.9 MT

India has received country-specific tariff-rate quota of 1.9 million tonne (MT) annually for steel exports to the European Union, while the government expects exporters to secure another 0.9 MT through residual quotas, taking the total to 2.8 MT, a commerce ministry official said on Thursday.

With this, India has secured over 80 per cent of its exports to the European Union (EU). Last fiscal, India exported about 3 MT of steel goods.

The Tariff-Rate Quota (TRQs) follow the European Union's Steel Overcapacity Regulation, which came into force on July 1 this year. It is aimed at ensuring protection for the EU's steel industry against the effects of global overcapacity. It sets free-of-duty quotas at 18.3 MT, with a 50 per cent duty for out-of-quota imports and a melt-and-pour regime to enhance transparency.

As the regulation is in place from July 1, Indian exporters have already started availing the quota and shipping steel to the 27-nation bloc, the official said, adding that "free trade agreement benefits for the steel sector have been frontloaded".

The exports under the quota are going at zero duty and beyond the available quota, the shipments face a 50 per cent tariff.