Uzbekistan imposes a 100% duty on scrap exports

President of Uzbekistan Shavkat Mirziyoyev has signed a decree on export reform, which provides for the introduction of new duties on 86 goods. This was reported by Kapital.

The maximum rate of 100% has been introduced for the export of scrap and waste of ferrous and non-ferrous metals, as well as for cotton fiber.

The export duties will be introduced on July 1 this year.

As noted, the purpose of these measures is to support the production of finished products from local raw materials and attract investment in the processing industry.

The Commission responsible for interaction with the World Trade Organization is obliged to evaluate the effectiveness of export duties on a quarterly basis. If necessary, it has the right to propose changes to them for consideration by the presidential administration and the Cabinet of Ministers.

As noted by the President’s Special Representative for the WTO, Azizbek Urunov, Uzbekistan is returning to the practice of export duties, which was abolished in 1997. Later, lists of goods whose exports are prohibited or allowed only with the approval of the government appeared.

The country lifted export restrictions in 2017, and the new decree will completely eliminate the permit system, which had insufficiently transparent criteria. Urunov explains that with the introduction of the export duty, export procedures are becoming clearer.

In February, Kazakhstan extended its ban on scrap exports for the next six months. The measure was adopted to ensure that domestic steelmakers have enough raw materials to supply them. Maximum domestic recycling of secondary metals is a strategically important area for the production of upstream products.