ESA became the first company to be exempted from duty on steel sales in the UK
Emirates Steel Arkan (ESA), one of the largest producers of steel and construction materials in the UAE, has been exempted from paying the 15% duty for the Saudi Arabian market on the sale of steel products. Zawya Projects reports about it.
“On October 20, 2022, the Federal Authority for Identification, Citizenship, Customs and Port Security of the United Arab Emirates issued an official letter exempting Emirates Steel from paying duty for the UAE market for the sale of steel products. ESA became the first company to be exempted from paying internal duties,” the message says.
The duty continues to remain on the rest of the industry. At the same time, other companies may also be exempted from paying tariffs in the long term.
In January 2022, the UAE General Directorate of Taxation and Customs Administration (ZATCA) issued regulations, particularly for steel plants, to ensure compliance with the origin of raw materials, quality of products, etc., in order to obtain duty exemption. After that, the Saudi authorities conduct an inspection of steel enterprises, determine compliance with the rules and the possibility of obtaining an exemption.
As GMK Center reported earlier, Emirates Steel is in partnership with Japanese ITOCHU and JFE Steel is considering the possibility of building a plant for the production of direct reduced iron (DRI) products in Abu Dhabi. Currently, a partnership agreement has been concluded between the companies. They will conduct a feasibility study for the creation of a raw materials steel hub to meet the growing needs for green steel.
According to Said Ghumran Al Remeiti, CEO of Emirates Steel, the group’s carbon footprint is already significantly lower than many other producers in the world, thanks to the use of natural gas and advanced direct iron recovery technologies.