Russian govt introducing quota on exporting scrap metal as of June 1, duty to be 290 euros/tonne when exceeded

MOSCOW. May 30 (Interfax) - The Russian government is introducing tariff quotas on exporting ferrous scrap metal and waste as of June 1 that will be valid until July 31, the government's press service said in a statement.

Exported scrap metal up to 540,000 tonnes will be assessed a duty of 100 euros per tonne, and assessed a duty of 290 euros per tonne above this figure.

The established tariff-quota volume up to 540,000 tonnes differentiates according to regions, accounting for the industrial specifics of each one, and the duties are only applicable to exports outside the Eurasian Economic Union (EAEU).

"The adopted decision is aimed at preventing price rises on the domestic market, as well as aimed at meeting the demand for raw materials from domestic metals enterprises," according to the statement.

Russia's Economic Development Ministry at the end of March announced that the subcommittee on customs-tariff and non-tariff regulation and protective measures in trade supported the Industry and Trade Ministry's proposal on introducing a tariff quota of 810,000 tonnes on exporting ferrous scrap metal and waste. The proposal envisaged that the export duty rate would remain at 5% as part of the quota, though at least 100 euros per tonne; and that the non-quota rate would be 5%, though at least 290 euros per tonne. The measure was to have been valid from May 1 to July 31, 2022.

The government increased the rates for export customs duties on ferrous scrap metal as of January 2022, and introduced a mixed export duty of 5% for 180 days, though at least 100 euros per tonne from the previous 70 euros per tonne. The government raised the duty on scrap metal the first time in 2021 to 5%, though at least 45 euros per tonne from 5%, though at least 5 euros tonne, amid rising prices for metals.

The government in mid-May 2022 also approved a permit procedure on exporting raw lead, as well as on exporting its scrap and waste, which is valid until November 15.