ICIT to revise a 23.5% special duty on wire imports

The Interdepartmental Commission on International Trade (ICIT) has started revising the decision of 23.04.2021 on the imposition of a 23.5% special duty on imports of wires to Ukraine, regardless of the country of origin or import, which should come into force in mid-October, according to a notice published in the Government Gazette.

The revision of the decision on imposing a special duty has been initiated by the Ministry of Digital Transformation of Ukraine.

“In accordance with paragraph 12 of Article 16 of the Law of Ukraine “On Special Measures in Regard to Imports to Ukraine”, the Interdepartmental Commission on International Trade considered the request of the Ministry of Digital Transformation of Ukraine to revise the decision of 23.04.2021. As a result, the Commission has started revising the decision. The Ministry of Economy was commissioned to revise the decision,” reads the notice.

Information within the framework of the revision will be accepted until 30 September.

As reported earlier, ICIT published a decision on the introduction of a special duty on imports of wires on 14 September. The safeguard measure will be imposed for a term of 3 years. Special measures provided for annual liberalization of 5%: 22.3% after 12 months, and 21.2% after 24 months.

On 28 July 2020, ICIT launched a special investigation into imports of insulated wires, cables and other insulated electrical conductors, fiber optic cables to Ukraine upon the initiative of Odeskabel Odesa Cable Plant and Yuzhkabel Plant.

Within the period of the investigation, imports increased by 128.8%, the share of imports grew by 180.4% in total production and by 74.8% in consumption. At the same time, a 30.9% increase in consumption entailed a 7.3% decline in domestic production and an 8.6% fall in sales.

According to the statistics of the State Customs Service, in H1 2021, imports of insulated wires, cables, other insulated electrical conductors, fiber optic cables (code 8544) to Ukraine totaled 30.2 thousand tons worth $310.95 million, 24.6% and 44.9% up respectively. Exports totaled 40.9 thousand tons worth $882.6 million, 40.1% and 57.9% up respectively.

Odeskabel is one of Ukraine’s leading manufacturers of fiber optic cables. The plant produces cable products for LAN networks, telephony and other purposes. The main consumers of its products include Zaporizhstal, ArcelorMittal Kryvyi Rih, and Ukrzaliznytsia (the Ukrainian Railways). In 2020, Odeskabel reported a net loss of ₴27 million.