Currently, metallurgical plants there is a shortage of scrap and its export from the country has a negative impact on the steel industry.
The legislation that increased the period of one year export duties on waste and scrap of ferrous metals up to 30 euros per 1 ton, and the abolition of obligatory state registration of contracts for export of scrap metal today, published in Uriadovyi courier, and shall come into force on 5 October.
Earlier, the Ukrainian metallurgical company repeatedly made demands to limit the export of scrap metal, as, in their opinion, at the present time the metallurgical enterprises there is a shortage of scrap and its export from the country has a negative impact on the steel industry.
The Verkhovna Rada in the spring of the current year has adopted the necessary legislation but it was vetoed by the President. On 12 July BP again took the law, incorporating the proposals of the guarantor.
The head of the Verkhovna Rada Committee on industrial policy and entrepreneurship Viktor Galasyuk in August of this year stated that the adopted by the Verkhovna Rada on 12 July, the law according to the Constitution, is approved by the President since the beginning of August.
According to the Galasyuk, the Constitution assigns to the President at the signing of the law 15 days in early August. However, the signing adopted by the Verkhovna Rada of the law with revisions of the President was postponed for unknown reasons, and the document was published only on October 4.
As reported the UNIAN, the Verkhovna Rada on 12 July 2016, supported the adoption of the Law On amendments to some laws of Ukraine concerning reduction of the deficit of ferrous scrap in the domestic market in order priority to ensure the needs of the defense industry and recovery infrastructure with revisions of the President.
President Petro Poroshenko signed the law after its adoption by the Parliament on 22 April this year, because it is, in the opinion of the guarantor, is not consistent with the obligations of Ukraine under the agreement with the world trade organization.
The President proposed to keep the rate of cancellation of registration of contracts for export of scrap metal on a regular basis, although previously it was proposed to abolish it in three years. Thus, the increase of export duty rates for scrap metal requested to set for a period of one year instead of the previously proposed three years.
Earlier, during consideration of the bill in April of this year, Deputy Yuriy Levchenko (Svoboda) said that the bill aimed to support the industry, however, this means the support of only two owners of the main companies in the industry. He said that this innovation will not bring any positive effects for the employees of these enterprises or budget from the point of view of tax revenues.
As noted in the explanatory note to the bill №3868, this document is aimed at stabilization of the situation in the steel industry and allied sectors through supply of scrap metal in the domestic market. Also expected to increase government revenue by increasing export duties on scrap metal and creating additional value added in the state by the deep processing of scarce raw materials.