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A Temporary Quantitative Restriction Is Introduced On The Export From Russia Of Waste And Scrap Of Ferrous Metals

The Ministry of Industry and Trade of Russia distributed quotas for foreign trade participants for waste and scrap of ferrous metals exported outside the territory of the Russian Federation to states that are not members of the Eurasian Economic Union for the period from September 1 to December 31, 2019 inclusive.

A quantitative restriction is introduced on the export from Russia of waste and scrap of ferrous metals classified by HS codes 7204 in the amount of 1,009.2 thousand tons.

Ferrous metal waste and scrap is a strategic type of raw material for domestic metallurgical enterprises. Russian steelmaking capacities are completely dependent on the availability of scrap. Over the past 10 years, the volume of procurement of scrap metal in Russia has been at the level of 25 - 28 million tons and has reached its maximum level. The average purchase price of scrap metal in 2017 increased by 25% compared to the previous year, in 2018 - by another 22%. The growth of scrap prices over the past two years amounted to 52.5%. Exports of scrap in the amount of more than 4 million tons per year increase its shortage in the domestic market and lead to speculative price increases

- explained the State Secretary - Deputy Minister of Industry and Trade Viktor Yevtukhov.

According to him, in Russia, the situation with the needs of scrap enterprises is significantly different depending on the region and is associated with a heterogeneous concentration of metallurgical industries and the presence of developed export corridors. In particular, the deficit is observed in the Southern, Ural, North-Western, Far Eastern Federal Districts.

Considering that waste and scrap of ferrous metals are essential goods for the domestic market of the Russian Federation, we introduce a temporary quantitative restriction on the export of waste and scrap of ferrous metals from the Russian Federation using regional factors. Regional ratios developed with the participation of scrap collectors and scrap consumers

- emphasized Victor Evtukhov. 

A coefficient of 0.5 is provided for the subjects of the Southern Federal District; for subjects of the Far Eastern Federal District - 0.6; for subjects of the North-West Federal District - 0.8; for Magadan, Murmansk, Kaliningrad regions, Kamchatka, Krasnoyarsk territories, Chukotka Autonomous Okrug - 1; for the Sakhalin Oblast - 1.2; for the Arkhangelsk region - 1.5; for all other constituent entities of the Russian Federation - 0.75.

Quotas are calculated and distributed by the Ministry of Industry and Trade of Russia between participants in foreign economic activity in accordance with the volumes of scrap they exported over a specified period, adjusted for the coefficient for each entity from which the scrap was exported.

A quantitative restriction on the export of ferrous scrap will contribute to redirecting strategic raw materials to the domestic market, increasing the production of finished products while maintaining the possibility of exporting scrap, as well as stimulating the collection of waste and scrap of ferrous metals in remote regions.

Issuance by participants of foreign economic activity of licenses for the export of waste and scrap of ferrous metals will be carried out by the Ministry of Industry and Trade of the Russian Federation in the prescribed manner.

An application for a one-time export license and a cover letter should be generated using the portal “Support for Foreign Trade Participants” (www.non-tariff.gov.ru) of the state information system - the automated information system “Foreign Trade Information”.

Obtain a one-time license for the export of waste and scrap of ferrous metals (HS code EAEU 7204) exported outside the territory of the Russian Federation to states that are not members of the Eurasian Economic Union, between participants in foreign trade for the period from September 1 to December 31, 2019 ( inclusive) it is possible both in paper, there and in electronic form (in electronic form the license file in PDF / A format will be available for download in your personal account on the portal, the license on paper is issued to the representative of the company by proxy awn at the Ministry).

Please note that in accordance with the Rules for the issuance of licenses and permits for the export and (or) import of goods (Appendix No. 7 to the Treaty on the Eurasian Economic Union of May 29, 2014) when issuing (processing) a license in the form of an electronic document, the applicant must submit the original A paper license to the customs authority is not required.

If you have any technical issues related to obtaining an electronic license on the support portal for foreign trade participants (www.non-tariff.gov.ru), you should contact the technical support service of the Ministry of Industry and Trade of Russia (e-mail: support@non-tariff.gov.ru Tel: +7 (499) 346-05-05).

The procedure for the provision of public services provided by the Ministry of Industry and Trade of Russia and its subordinate organizations for the issuance of licenses and other permits for export-import operations with certain types of goods is available on the official website of the Ministry of Industry and Trade of the Russian Federation at: http://minpromtorg.gov.ru/activities / services / licensing / 1_10 / 1_10_1 /

 

Order of the Ministry of Industry and Trade of Russia “On Approving the Distribution of Quota Volumes for Wastes and Scrap of Ferrous Metals (EA FEA EAEU 7204 Code) Exported Outside the Russian Federation to Non-Member States of the Eurasian Economic Union, between Foreign Trade Participants for the Period from September 1 to December 31, 2019 (inclusive)

 

 

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