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Common Customs Tariff to change the situation in the polymers market

January 15/2010
MOSCOW (MRC) -- Introduction of the Common Customs Tariff will impair some Russian polymers processing sectors Ц MRC analysts reached a conclusion.

The Common Customs Tariff (CCT) came into effect in Russia, Belarus and Kazakhstan on January 1, 2010. Particularly, the CCT implies review of import duties by 124 codes of Foreign Economic Activity Commodity Classification (FEACC), which someway or other regard the polymers market. Duties on 16 FEACC codes were raised, whereas duties on 108 codes were cut down.

Global analysis of duties indicates that the influence of foreign converters on the Russian market will only intensify in the near future, whereas domestic convertersТ opportunities will contrariwise shrink. In the long term, due to the unification of duties in the three countries, Russian converters will be able to strengthen their positions in the markets of Belarus and Kazakhstan.

Already in 2010, the reduction of duties will most likely stimulate imports of washing-machines, vacuum cleaners, telephones, plastic furniture, PVC films and soles in Russia. Imports of washing-machines moved at USD 658 million in Russia in 2008, according to expert evaluations.

In the markets where duties were raised positions of the domestic processing sector will contrariwise strengthen. That refers to producers of monitors, PET films, flooring. The good news for all converters is the reduction of the duty on blow molding equipment from 5% down to 0%. Overall investments into the Russian polymers processing industry exceeded USD 5.2 billion over the recent decade.

The import duty on PVC-S was cut down from 15% to 10%; that on PVC-E moved from 5% to 0%. The duty on polystyrene  was reduced down to 0% (from 5% on freon-resistant material and from 10% on original styrene polymers, apart from ABS and SAN). The duty on plasticizers moved at 0%, as well. Undoubtedly, positions of producers of polystyrene, PVC-S and plasticizers will be seriously impaired. At the same time, domestic converters of these raw materials will be able to benefit from more attractive prices already commencing 2010.

The infographics will give you a more comprehensible picture of changes in duties. Detailed information on how new duties may affect the domestic polymers market, as well as how the situation in each polymers processing sector is going to change can be found in MRC Annual Reports. See the Reports publication schedule.

Common Customs Tariff to change the situation in the polymers market  - Infographics


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