Rada has increased the duty on scrap contrary to the Agreement with the EU

Рада повысила пошлины на лом вопреки Соглашению с ЕС

Rada has increased the duty on scrap

The EU delegation in Ukraine has called not to renew the duties on exports of scrap metal, so that this step would violate the agreement with the EU on the abolition of these duties.

The Verkhovna Rada on Thursday, may 17, raised the rate of export duty on scrap metal from 30 to 42 euros and extended the duties for a year, reports Interfax Ukraine.

It is noted that this decision was in General supported by 248 deputies.

Originally intended to extend the duties for another three years – from the current two to five years, but at the suggestion of Chairman of the tax Committee Nina southerner term extension was extended for one year, until September 14, 2019.

In the explanatory Memorandum to the bill noted that after the increase of export duty for 10 euros per tonne to EUR 30 per ton for 2017, there was a trend increase in scrap collection in Ukraine for 7.8 percent compared to 2016 year – on-year to 3.79 million tonnes.

It has allowed to keep positive dynamics of scrap supply to domestic steelmakers, last year they increased by 1.85% compared to the previous year – on-year to 3.30 million tons, while increased production volumes.

We will remind, in June of last year the Verkhovna Rada voted for a two-year extension of the action of the increased export duty on scrap metal. However, because of the protests of the EU, the President returned the bill to Parliament with a proposal to extend the duty for two years, and for the year.

The EU delegation to Ukraine urged not to renew the duties on exports of scrap metal, so that this step would violate the agreement with the EU on the abolition of these duties.

As a result, the Parliament approved the President’s proposal and extended the duties for the year. The President signed the law in August 2017.

The EU claims that the increase in action and fees for scrap violates the “spirit and letter” of the Association Agreement.

As reported, the United States postponed the introduction of duties on steel and aluminum.

 

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