The Ministry of Economy and Commerce of Kyrgyzstan has prepared an initiative to extend the temporary ban on the export of scrap and waste of ferrous metals. This project has been put forward for public discussion.
Essence of the Proposal
In the proposed document, which is a government resolution, there is a discussion about extending the ban on the export of scrap and waste of ferrous metals, as well as ingots for remelting (charge ingots) for another six months. The ban will apply to goods classified under code 7204 of the EEU Customs Tariff.
Goals of the Ban Extension
According to information provided in the justification note, there are five major processing companies operating in the republic: LLC "Metal-Ken," LLC "Asia Steel," LLC "Frunze Metal Plant," LLC "Lahore Steel Mills," and LLC "Vulkan Plus," which together are capable of processing about 490,000 tons of scrap metal annually. The government previously imposed export customs duties on scrap and waste of ferrous and non-ferrous metals to support the metallurgical industry; however, these measures did not achieve the expected results in reducing export volumes, as indicated in the justification note.
The return of the ban will help meet the high demand for quality secondary scrap metal in the country.
The ban will not apply to the export of finished products obtained from the processing of scrap and waste of ferrous metals.
If the proposal is approved, the new resolution will come into effect 15 days after its official publication.
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