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Following reports of gross misuse of the iron ore export policy and test checks having established instances of such misuse, government have issued show cause notices to 3 firms for violation of policy provisions relating to export of iron ore. In view of the magnitude of the misuse, the government is also actively considering to restrict export of iron ore above 62% Fe either through canalisation or other means.
Presently, iron ore with less than 64% Fe content is freely allowed to be exported under OGL, while iron ore with 64% Fe content and above is exported under licence or through MMTC. However, there were repeated complaints that parties have been circumventing the policy provisions by declaring iron ore as below 64% Fe content so as to export under OGL.
Following complaints and representations, four special investigation teams of DGFT including members from the Export Inspection Council (EIC) were deputed for collecting iron ore samples from the 4 different ports viz., Mangalore, Haldia, Vishakapatnam and Paradip during period November 4-11, 2004. A total of 30 samples were collected by the above teams, which were sent for analysis to Regional Research Laboratories. On receipt of the report, it was found that 3 of the firms were exporting iron ore above 64% Fe without licences, based on which the DGFT has taken action by issuing show cause notices under the Foreign Trade (Development & Regulation) Act.
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