Marble Blocks import into India

Import of Rough Marble Dimensional Blocks, marble slabs and tiles (other than cut and polished marble slabs and tiles) is allowed only by special licences issued by the Director General of Foreign Trade in India. Till now, annual licences are issued to those elegible to import marble blocks into India. For the year 2008-2009, licences totalling upto 140,000 tons of rough marble blocks, slabs and tiles (HS Classifications 25151100, 25151210, 25151220, 25151290) will be issued to existing marble sawing and processing units in India who have imported rough marble blocks and slabs in preceding years when licensing was applicable. Units who were hitherto elegible to apply for licences are those units that were importing marble blocks in period preceding the year from which restrictions came in force. Out of total licences of 140,000 tons, elegibility for each elegible license holder is normally worked out on basis of turnover for the year 2007-08 i.e. the turnover of the eligible firms for the year 2006-07, or the turnover of these firms for the year 2004-05 with a cap of 10%, whichever is less. The licenses are issued on actual user basis and the maximum entitlement is 14,000 tons for any single license holder.

There are certain points to bear in mind regarding these licenses:-

1. These licenses are not applicable to 100% Export Oriented Units or Units in Special Economic Zones that are eligible to import rough marble blocks and slabs for processing export orders directly or as deemed exports.
2. A passbook is maintained for the imports and the importer has to file monthly returns with the licensing authorities to keep record of the amount of imports and balance available.
3. Import of Dolomite is banned against these licences. Therefore what is known as Thassos White Marble cannot be imported in rough blocks or slabs form other than by 100% export oriented units. For domestic consumption in India, Thassos White marble has to be imported in cut and polished form only.

In case an elegible importer fails to use his full entitlement he sells his licence in the open market. Currently the rate for these licences is approximately Rs.10,000 - Rs.11,000 per ton depending on the demand / availability.

The floor price of imported marble (the minimum import price) should be not less than US$325 per ton c&f for blocks and US$500 per ton c&f for slabs.

Marble manufacturers associations have made a representation to the licensing authorities to review the licensing regime. In my next post I will discuss about the salient features of the review.