Abu Dhabi Firms Call for Probe into 'Illegal Steel Scrap Import' from UAE

Three steel companies from Abu Dhabi, United Arab Emirates (UAE), have taken their case to the Bombay High Court, accusing certain parties of illegally importing steel scrap from the UAE to India. The companies—Shattaf Steel Ind Co LLC, Emirates Steel LLC, and Arabian Gulf Steel Industries LLC—believe that this illegal activity is not only causing economic losses but also harming the environment. The companies have asked the court to direct India's Customs Chief to investigate what they say are fraudulent practices linked to the steel scrap imports.

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The petition highlights the fact that illegal imports are affecting trade agreements, especially the Comprehensive Economic Partnership Agreement (CEPA) signed between India and the UAE in May 2022. According to the companies, these imports violate the terms of the agreement, and the situation has serious consequences for both countries' economies.

The steel companies also pointed out that in 2023, the UAE government imposed an export fee of AED 400 per ton on industrial waste, including steel scrap. This was done to address environmental concerns, particularly regarding the disposal and recycling of waste. However, the petitioners argue that the steel scrap being illegally shipped to India is bypassing these environmental rules, and might not meet the required environmental standards in India. They claim that this could lead to the import of unchecked industrial waste, which could have harmful effects on India's environment.

The petition emphasizes that these practices should be thoroughly investigated to protect both the economy and the environment.