Iran intends to protect the local steel industry
13 February 2017
It became known that Iranian authorities are seriously considering the possibility of introducing additional trading fees. The government hopes to support local steelmakers whose products are not in demand in the local market. These data were published in the local press.
That would bring the initiative to life, it should be considered by the guardian Council of the Constitution. And only in case of approval, additional import duties will be imposed. Experts suggest that the issue will likely be resolved in favor of the duties. Since last year, the government expressed its intention to expand production capacity of the steel industry. At the same time in the local market products of Iranian metallurgists are not in high demand.
Trading fees in the first place, will affect imported steel products. Thus, the measure will affect beams, pipes, billets and flat products. If you have additional questions, fees will be introduced in the second half of 2017.
Currently, in Iran, at least five million tons of excess production capacity. The decline in imports may be able to offset the increased due to the increase in domestic demand.
The fee will be another addition to the already existing tax on imported steel products. So, on a flat product sales tax ranges in size from twenty to twenty-six percent. In this case, the size of the payment depends on the type of products. For workpieces with a low tax of fifteen per cent. For import of long segments of foreign producers pay twenty-six percent. Analysts suggest that the new duty of the Iranian government will be twenty-five dollars per ton.
For the period from the twentieth of March to the twentieth of December, in Iran there was a reduction in imported products. According to the report of the Association of steel producers in Iran, the figure decreased by twenty percent. For the first nine months the country imported two and a half million tons of steel products. In this case, the reason for the low internal demand for the product and import tax.
