Russia's customs subcommittee approves proposal to exempt certain types of pig iron, hot-rolled products from 'exchange rate' export duties

MOSCOW. Aug 26 (Interfax) - Russia's subcommittee on customs-tariff and non-tariff regulation and protective measures in foreign trade under the government commission on economic development and integration has supported the Industry and Trade Ministry's proposal to exempt certain types of pig iron and hot-rolled steel products from the so-called "exchange rate" export customs duties, the Economic Development Ministry said in a press release.

"The decision should assist in maintaining the profitability of exports from domestic metals enterprises and preserve volumes of production," the Economic Development Ministry said.

As reported, the Russian government as of June has temporarily exempted certain types of metals products from the "exchange rate" export duties, according to the corresponding government resolution earlier. The resolution indicates that the exemption includes non-alloy pig iron with codes 7201 10 190 0, 7201 10 300 0, and 7201 10 900 0; as well as steel rods, including hot-rolled, with codes 7213 10 000 0, 7213 91 490 0, and 7227 90 100 0. The duties have been suspended from June 1 to August 31, 2024, inclusive.

Export duties linked to the ruble exchange rate are valid from October 1, 2023, until the end of 2024, ranging from 4% to 7% depending on the exchange rate. The duty is zero when the exchange rate is 80 rubles/$1 and lower.