Russia Increases Steel Scrap Export Tax to EUR 70 Per Tonne
TASS reported that Russian government’s subcommittee on customs tariff and non-tariff regulation, protective measures in international trade has decided to
TASS reported that Russian government’s subcommittee on customs tariff and non-tariff regulation, protective measures in international trade has decided to increase the minimum export duty on scrap and iron and steel waste from EUR 45 per tonne to EUR 70 per tonne, as against Industry and Trade Ministry’s suggestion of EUR 90 per tonne. It said "The interest component of the duty will remain unchanged at 5% of the customs value. Meanwhile, the minimum duty will be changed from EUR 45 to EUR 70 per tonne for improving the efficiency of customs administration and preventing the undervaluation of the customs value in exports. Consequently, the rates of export customs duties on waste and ferrous scrap will amount to 5%, but no less than USD 70 per tonne.”
The decision was taken on May 25. The move follows the growth of global prices for those products and is expected to allow keeping their sufficient volume on the domestic market.
In 2020, exports of ferrous scrap from Russia rose by 15% to 3.8 million tonnes. An increase in duties allowed the reduction of exported volumes of scrap as it dropped 4.5-fold from February to April to 194,000 tonnes. However, the global trends of growing scrap metal prices have again been to the benefit of rising scrap exports