Platts clarifies duty standard in CFR India coke assessments

S&P Global Platts would like to clarify the reflection of duties and taxes levied on metallurgical coke imports in its CFR India metallurgical coke assessment process.

Platts CFR India metallurgical coke assessments reflect the value of coke imports delivered into Indian ports per standard international commercial terms, with sellers covering costs to the point of delivery and buyers accounting for import duties and taxes. Platts seeks to reflect products from all appropriate origins in its delivered assessment processes, and bids, offers and trades published in the assessment process are considered open origin unless otherwise stated.

Platts understands that certain reported market data, including bids, offers and trades for specific origins, reflect an adjusted price to account for higher duties applicable to material from those origins, including the Basic Custom Duty, the Social Welfare Cess and antidumping duties, and lower duties applicable to material from origins with which India has trade agreements. Where such adjustments are observed, Platts will state this in published commentary.

Platts considers that such prices offset some applicable duties and in effect mean these transactions do not represent the standard duty unpaid value of a CFR transaction.

Platts may therefore normalize bids, offers and trades that include such offsets to a duty unpaid CFR standard for reflection in its assessments. For the purposes of such normalization, Platts will consider standard applicable duties, which are currently 5.5%.

This approach applies to the following assessments:

Met Coke 62/60 CSR CFR India (MCINA00)

Met Coke 65/63 CSR CFR India (MCINB00)

Met Coke 66/65 CSR CFR India (MCCNI00)

Met Coke CFR East India (MCCEI00)

Platts continues to monitor applicable duties for changes and will update its normalization practices to reflect prevailing trading norms.

Please send comments, questions and other feedback to pl_cokingcoal@spglobal.com and pricegroup@spglobal.com.