MOSCOW (MRC) - The Ministry of Industry and Trade of the Russian Federation considers the appeal of Nizhnekamskneftekhim about the possibility of increasing import duties on a linear low density polyethylene (LLDPE).
The duty is expected to be increased by 6.5%, according to MRC analysts.
Last week the subcommittee on customs tariff and non-tariff regulation, protective measures in foreign trade of the Government Commission on Economic Development and Integration began considering of the request of Nizhnekamskneftekhim about the possibility of increasing the import customs duties for LLDPE from 0% to 6.5%.
This refers to the products that are classified by Single Commodity Nomenclature of Foreign Trade of the Eurasian Economic Union under codes 3901 10 100 0 and 3901 90 900 0.
The Commission intends before 20, April to collect all the necessary documents on feasibility of increase of the import duty on the above mentioned products. The question of import duties for linear polyethylene is quite painful for Russian converters.
Production of LLDPE is quite small in Russia in comparison with the processing volumes, thus, the main converters have to meet the demand for the feedstock by imports. Before 1, January 2010 import duties on linear polyethylene was 10% (although earlier there were two periods of duty-free imports), and then because of the request of film producers it was cut to 0%. Product code in Single Commodity Nomenclature is 3901 10 100 0.
Council of the Eurasian Economic Commission on 12, October, 2012 made a decision №89 "On Amendments to the single commodity nomenclature of foreign economic activity of the Customs Union and the Common Customs Tariff of the Customs Union in respect of silicone resins, ethylene polymers, certain types of organic chemicals, fish", which cut import duties on other polymers of ethylene to 0% (code TN VED 3901 90 900 0).
Officials Commission's decision was published on 20, November 2012 and entered into force on 20, December, 2012.
According to rules of the Unified Customs Union, the code TN VED 3901 90 900 0 includes all other polymers of ethylene. Linear polyethylene having a total weight of more than 5% of copolymer units of butene, hexene or octene is partially included into this classification.
According to MRC data, PE imports in 2014 on code 3901 10 100 0 and 3901 90 900 0 amounted to about 131,800 tonnes and 120,100 tonnes, respectively, in 2015, these figures dropped to 98,200 tonnes and 120,600 tonnes.
MRC