The EAEU considers a complete ban on the export of ferrous scrap

The Eurasian Economic Union (EAEU) has published a draft board decision on the inclusion of ferrous scrap in the list of goods for which there is a ban on export outside the member states - Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan.

On June 15, the EEC will hold a board meeting, which will decide on a possible ban from July 15, 2021 to January 15, 2022. Discussion of the project will last until June 21. The document says that the restriction does not apply to transit traffic.

"The draft decision proposes to introduce a ban on the export of waste and scrap of ferrous metals from the customs territory of the Union - code 7204 of the EAEU TN VED," the commission notes.

The specified product is included in the list of goods necessary for the internal market of the EAEU and in respect of which, in exceptional cases, temporary bans or quantitative restrictions on exports may be introduced, he adds.

Simultaneously with the introduction of a future ban on the export of scrap at the EAEU level, it is proposed to cancel similar decisions previously adopted by Armenia at the national level in January 2021. Kyrgyzstan and Kazakhstan also introduced a temporary ban on the export of scrap. outside the EAEU in March.

Russia has not yet introduced a complete ban on the export of ferrous scrap, limiting itself to increasing the minimum fiscal value of the export duty on ferrous scrap from the existing 45 euros per tonne to 70 euros per tonne ($ 85 per tonne). The existing level will expire at the end of July.

The Russian scrap association Ruslom is preparing an appropriate appeal to the EEC to protect the interests of the industry.

It says that exports of ferrous scrap from the country have dropped significantly as the higher minimum budget cost has been increased. It says that Russian scrap exports fell to a quarter in February, March and April, when a higher duty of € 45 per tonne was applied. This went from 796,000 tonnes in the corresponding period of 2020 to just 194,000 tonnes this year.