Ukrainian Customs Service issued 80 certificates to export scrap metal to EU in H1 - Finance Ministry

MOSCOW. July 26 (Interfax) - The Ukrainian State Customs Service issued 80 certificates to businesses exporting scrap metal to European Union member states in January-June 2022, Ukrainian media reported with reference to the Finance Ministry's reply to a letter from the Ukrainian Association of Secondary Metals (UAVtormet).

The Finance Ministry said the State Customs Service has not received complaints from exporters about problems with receiving certificates.

UAVtormet on June 20, 2022 forwarded a letter to the Finance Ministry and the State Customs Service to notify them of complaints from market players about selectivity in issuing permits during the formalization of export procedures, including the issuance of certificates to supply scrap metal to the EU.

UAVtormet said in its letter that the certificate issuance procedure, which the Finance Ministry endorsed in its order dated March 2, 2021, was significantly complicated and did not contain a full list of essential documents, while the full or partial inspection of vehicles to identify the cargo was used to drag out and delay the clearance of export shipments.

In turn, UAVtormet argued that this creates corruption risks and causes financial damage to both the state and the business community.

The association asked the Finance Ministry to hold a conference dealing with problems involved in scrap metal exports, inviting specialists from the ministry, the State Customs Service, the Chamber of Commerce and Industry, UAVtormet, and the Ukrainian Association of Secondary Metals and Resources (UAVtormetresurs).

As reported earlier, Ukrainian companies reduced exports of ferrous scrap metal by 87.5% to 28,740 tonnes in January-June 2022 compared to the same period in 2021. In monetary terms, exports of scrap metal dropped by 85.3% to $12.24 million.

In January-June 2022, scrap metal was exported from Ukraine chiefly to Turkey (61.35%), Poland (12.49%), and Germany (9.45%).

Ukraine increased exports of scrap metal 17.2 times to 615,690 tonnes in 2021 compared to 2020. In monetary terms, those exports grew 25.2 times to $238.9 million.

The Ukrainian entities exporting scrap metal include UAVtormet, UAVtormetresurs, and the Ukrainian Association of Scrap Metal Exporters (UAEM).