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MIL OSI Translation. Region: Russian Federation –

06/24/2021

The Subcommittee on Tariff Regulation supported the introduction of duties on the export of ferrous and non-ferrous metals from August to the end of the year to stabilize prices for metal products on the domestic market after the relevant government decision. This was reported by the press service of the Ministry of Industry and Trade and the Ministry of Economic Development.

“The subcommittee on customs-tariff and non-tariff regulation at a meeting on Thursday, June 24, supported the introduction of combined duties on the export of ferrous and non-ferrous metals. The income from duties will compensate for the rise in prices for metal products in the domestic market,” the statement said. Earlier, the corresponding decision was agreed at a meeting of the government of the Russian Federation.

It is assumed that the duty will be extended to a wide range of products – rolled products, rebar, billets, wire, ingots, as well as copper, nickel and low-grade aluminum. At the same time, a combined duty is provided, which will consist of a base rate (15%) and a specific one, which will be calculated in dollars per ton.

Specific rate

Depending on the degree of “redistribution” (processing) of ferrous metals, each product category will have its own minimum duty: for pellets and other products, the duty will be at least $ 54 per ton, for hot-rolled flat products, rebar – at least $ 115 per ton, for cold-rolled steel, wire – at least $ 133 per ton, for stainless steel and ferroalloys – at least $ 150 per ton.

For non-ferrous metals, the specific duty was calculated depending on the type of metal: the duty rate for copper will be at least $ 1,226 per ton, for nickel – $ 2,321, and for aluminum – $ 254.

The measures are planned to be extended only to exports outside the Eurasian Economic Union. Russia will hold negotiations with partners from the EAEU to prevent re-export of metal products.

Earlier, as noted in the Ministry of Economic Development, the corresponding decision was agreed at a meeting of the government of the Russian Federation. As the head of the Ministry of Economic Development Maxim Reshetnikov noted during the meeting, the profit of the metallurgical industry in the first quarter amounted to 570 billion rubles, and by the end of the year it could reach from 2.1 trillion to 2.3 trillion rubles. According to First Deputy Prime Minister Andrei Belousov, the introduction of a temporary duty is not a punishment for metallurgical companies, but measures to protect the domestic market.

There is no need to renew the measures

The deputy head of the Ministry of Industry and Trade Viktor Evtukhov expects that there will be no need to extend export duties on ferrous and non-ferrous metals in 2022. “This is a necessary measure. We hope that it will not have to be extended. Additional receipts will go to support metal-intensive industries,” said Yevtukhov, whose words are quoted in the ministry’s message.

In turn, the head of the Federal Antimonopoly Service (FAS) Maxim Shaskolsky said that the duties would not have a negative impact on the state of competition in the domestic market of Russia. “Export duties on ferrous and non-ferrous metallurgy products will not have a negative impact on the state of competition in the domestic market of the Russian Federation, while at the same time they will contribute to ensuring domestic demand and adjusting prices,” said Shaskolsky, whose words were reported by the press service of the Ministry of Economic Development.

According to the FAS, when forming prices for metallurgical products, it is necessary to take into account not only world quotations, but also proceed from the conjuncture of domestic commodity markets: supply and demand in the Russian market. “The price level should not lead to a reduction in the number of consumers of metal products,” the department emphasizes.

As the head of the main department of federal customs revenues and tariff regulation of the FCS Maxim Chmora noted, the customs service is ready to administer the collection of these duties.

A source: TASS

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EDITOR’S NOTE: This article is a translation. Apologies should the grammar and / or sentence structure not be perfect.

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