Navigate Up
Sign In
EEC Council increased import duty on low-density ethylene polymers to 6.5% for one year

EEC Council increased import duty on low-density ethylene polymers to 6.5% for one year

Фото-1.jpg
9/18/2020

The Eurasian Economic Commission’s Council has supported the initiative proposal submitted by the Russian Federation to register certain types of ethylene polymers in primary forms not manufactured in the territory of the EAEU as well as low-density ethylene polymers manufactured in sufficient quantities, in the Single Commodity Nomenclature of Foreign Economic Activity of the Eurasian Economic Union.

 

The import duty rate will remain at zero point in respect of the first category of goods, and the level of tariff protection will increase to 6.5% for a period of one year in respect of the second category. The temporary duty rate of the Eurasian Economic Union's Common Customs Tariff for low-density ethylene polymers is limited to the maximum possible binding level in accordance with the tariff obligations of Russia and Kazakhstan under the WTO.

 

"The adopted decision is aimed at creating favorable conditions for developing the production of low-density ethylene polymers and increasing the share of internal market consumption of goods manufactured by the EAEU enterprises as well as promoting import substitution of foreign analogues," mentioned Vahagn Ghazaryan, Director of Tariff and Non-Tariff Customs Regulation Department of the EEC.

 

Low-density ethylene polymers are widely used in manufacturing finished products (various types of films, bags, general purpose containers, geomembranes, mixtures and composite materials) as well as for obtaining casted products. The share of low-density ethylene polymers in the cost price of final products ranges from 5-30% (hybrid films) to 40-87% (stretch film, containers and compounds), depending on the product type.

 

According to the given information, Russia has launched the production of a wide range of low-density ethylene polymers. The leading manufacturers are Nizhnekamskneftekhim, PJSC, Kazanorgsintez, PJSC, and ZapSibNeftekhim, LLC since January 2020. The overall capacity utilization and manufacturing plans of these enterprises enable satisfying the need for low-density polyethylene not only of the Russian processors, but also processors from other EAEU States. 

 

The EEC Council's Decision shall come into effect after 10 calendar days have elapsed from the date of its official publication.