Indian Exporters Resume Bulk Billet Exports to Bangladesh- Sources

Indian Exporters have resumed bulk billet exports to Bangladesh after a long period. SteelMint learned that an Indian large private mill has sold around 15,000-20,000 MT billets to one of Bangladesh ' s largest rolling mill.

However, it was not clear at what price deal was concluded but market anticipates it at around USD 403-405/MT FOB India. Freight to Bangladesh would be around USD 15-18/MT.

VAT input

Billet imports to Bangladesh has resumed after the federal budget announced on 1st June. According to this, billet importers will be eligible for VAT input from now on which was not there earlier.

Notably, Bangladesh government has imposed a uniform VAT of 15%.Earlier steel rods were categorised under special category and VAT was charged at a very low rate. This VAT was not adjustable with VAT paid on imports of billet.

Bangladesh during its FY16 (Jul-Jun) imported around 0.99 MnT billet in bulk , which is expected to drop to 0.35 MT in FY17 (ending Jun'17). In 2016 , Bangladesh government increased import duty on imports of billet and imposed 15% VAT.

Indian billet exports increased two fold in FY17 (Apr'16-Mar'17) -The total export of semi finished goods under chapter 7207 was 1.94 MnT as compared 0.97 MnT in FY 16. Out of total exports 35.71 % was made to Nepal followed by Bangladesh (20.80%) and Thailand (8.50%).