Armenia to impose customs duty on export of scrap metal
02.05.2019,
17:36
A decision taken today by the government of Armenia to amend the law "On State Duty" calls for imposing customs duty on export of ferrous metal scrap.
YEREVAN, May 2. /ARKA/. A decision taken today by the government of Armenia to amend the law "On State Duty" calls for imposing customs duty on export of ferrous metal scrap in the amount of 80,000 drams . Economic Development and Investments Minister Tigran Khachatryan said the amendments are to apply also to export of Armenia-manufactured ferrous metal scrap.
The minister recalled that in 2013, the government introduced mandatory payments for the export of scrap metal and created conditions for establishing domestic production of metal products. As a result some 30 enterprises were founded, which jointly meet the domestic demand for rebar and pipes.
According to the minister, the current legislation has some shortcomings, in particular, regarding local products. As a result some 1,200 tons of scrap metal are exported from the country every month. He said this creates serious problems in terms of availability of raw materials for local producers.
In his words, the local demand amounts to 7-8 thousand tons a month, and if the export continues in the same volume, it may create serious problems for domestic production of rebar and pipes.
He said according to the ministry's estimates, the scrap metal reserves are sufficient for the next 15-18 years. This will ensure the domestic production, which can develop as far as to make imports of raw materials non-competitive.
According to the minister, introduction of ban on exports of scrap metal would dissatisfy the people engaged now in exports of duty free scrap metal.
Prime Minister Nikol Pashinyan pointed out the frames of old cars scattered everywhere. He said there are companies that collect these cars for recycling, adding that this process is very important. --0--
The minister recalled that in 2013, the government introduced mandatory payments for the export of scrap metal and created conditions for establishing domestic production of metal products. As a result some 30 enterprises were founded, which jointly meet the domestic demand for rebar and pipes.
According to the minister, the current legislation has some shortcomings, in particular, regarding local products. As a result some 1,200 tons of scrap metal are exported from the country every month. He said this creates serious problems in terms of availability of raw materials for local producers.
In his words, the local demand amounts to 7-8 thousand tons a month, and if the export continues in the same volume, it may create serious problems for domestic production of rebar and pipes.
He said according to the ministry's estimates, the scrap metal reserves are sufficient for the next 15-18 years. This will ensure the domestic production, which can develop as far as to make imports of raw materials non-competitive.
According to the minister, introduction of ban on exports of scrap metal would dissatisfy the people engaged now in exports of duty free scrap metal.
Prime Minister Nikol Pashinyan pointed out the frames of old cars scattered everywhere. He said there are companies that collect these cars for recycling, adding that this process is very important. --0--
