India: Tinplate users want ISO-equivalent imports, withdrawal of QCO

Tinplate and tin-free steel user industries want ISO-equivalent imports of the materials to end a stalemate that is impacting their business. The Metal Container Manufacturers Association of India (MCMA) wants the present BIS quality control order (QCO) issued by Ministry of Steel, which has been recalled thrice previously, to be withdrawn. If not, then the MCMA wants it to be kept on hold till Mar'22 so that it has time to review it, both from raw material and components perspective.

The MCMA sent a representation to the Union Minister of Commerce and Industry, Piyush Goyal, and on his direction a virtual meeting took place with the Additional Secretary, DPIIT. The Association is awaiting its feedback.

It may be recalled, the Ministry of Steel had imposed the above mentioned QCO on imports of tinplate and tin-free steel and its products like easy-open ends and aerosol can components on 17 Jul'20 to stall the entry of secondary materials into India. The same has been extended till 17 Jul'21 much to the consternation of the user-industries, which are mainly manufacturers of food grade and other non-edible usage cans.

The MCMA feels the government should allow imports of ISO-approved equivalent material. Even tinplate has an ISO equivalent standard in the BIS. "We have asked the government to allow or include ISO equivalent standards in the QCO, a move that can end the present stalemate since standard material will find entry into India henceforth," Sanjay Bhatia, President, MCMA, told SteelMint.

Deferment of the order till Mar'22, Bhatia said, will allow the can manufacturers time to import the raw materials too. At present, there is no time till mid-July since a lead time of at least four months is required in imports. Imports of tinplate and tin-free steel and easy-open ends (which are virtually not manufactured in India), have almost stopped, impacting business.

Applications for BIS registration pending

Because of the QCO, exporters of tinplate and tin-free steel to India need to apply to the BIS for registration and approval of their plant.

However, the tinplate applications of Nippon Steel Corporation (two plants) of Japan, JSC Arcelor Temirtau, Kazakstan and a China-based tinplate producer are pending for around four months. In tin-free, applications are pending from Nippon Steel Corporation, Japan and China's Jiangsu Suxan New Material Co Ltd.

Short-term outlook

Around 5,000 tonnes per annum of material is used for the manufacture of easy open ends and aerosol can components. However, can manufacturers are refusing further orders because they do not have the raw material or components.

Due to the pandemic, BIS officials are unable to visit these overseas plants for inspection. Nor is there any clarity on when the scenario will ease to allow travel both ways.

There is no update from the government on the MCMA's representation.

~Madhumita Mookerji