Abu Dhabi Steel Firms Petition Bombay High Court Over Alleged "Illegal" Scrap Imports to India
In a move that could have significant economic and environmental implications, three steel firms from Abu Dhabi have filed a petition with the Bombay High Court, alleging illegal import of steel scrap from the UAE to India. The petition was submitted by Shattaf Steel Ind Co LLC, Emirates Steel LLC, and Arabian Gulf Steel Industries LLC, all of which are major players in the steel industry in the UAE.
The petitioners are urging the court to direct India’s Customs Chief to investigate the alleged fraudulent practices surrounding the importation of steel scrap. According to the companies, the illegal imports are causing substantial economic losses, environmental damage, and potential violations of international trade agreements.
Environmental Concerns and the Comprehensive Economic Partnership Agreement
The petition highlights several key issues that have sparked the controversy. The companies argue that the illegal importation of steel scrap is bypassing necessary environmental checks and regulations. Specifically, they contend that scrap metal entering India may not meet the environmental standards required by the country, thus introducing unchecked industrial waste into India's recycling and disposal systems.
Additionally, the petitioners point out that the import practices are undermining the terms of the Comprehensive Economic Partnership Agreement signed between India and the UAE in May 2022. This agreement, which aims to strengthen bilateral trade relations, includes provisions on the responsible export and import of industrial goods, including waste and scrap materials. The petition alleges that the illegal imports are not only an environmental hazard but are also in violation of the spirit of the CEPA.
The UAE’s Export Fee on Steel Scrap
In 2023, the UAE government imposed an export fee of AED 400 per metric ton on industrial waste exports, including steel scrap. This fee was introduced as part of an effort to reduce the environmental impact associated with waste disposal and recycling. The petitioners argue that the illegal imports to India are circumventing this fee and the associated environmental safeguards, which are intended to ensure that steel scrap is processed in an environmentally responsible manner before being exported.
Implications of the Petition
The petition by the three Abu Dhabi steel firms underscores a significant concern about the management and regulation of industrial waste in international trade. It calls for the Indian authorities to conduct a thorough probe into the practices surrounding the import of steel scrap from the UAE, particularly regarding the environmental and economic ramifications.
If the petition is successful, it could lead to a reevaluation of import policies, potentially tightening regulations around the import of scrap metal, and ensuring that foreign waste meets India’s stringent environmental standards before being allowed into the country.
