Customs Duty on Cement in Russia Are Abolished
OREANDA-NEWS. January 10, 2007. By № 913 Decree of the Government of the Russian Federation, customs duties on cement are abolished and the rate for a number of construction materials is decreased from 15 % to 7,5 % of the rate of customs value, reported the press-centre of FAS Russia.
Under the Decree, from January 2008 concrete can be imported to Russia duty free. Furthermore, the rates for building blocks made from lightweight concrete, roofing tiles, floor parts and channeled plates for roof finishing are halved.
It was FAS Russia that initiated abolition of duties. In September 2007 the Antimonopoly Service proposed to the Government of the Russian Federation to abolish 5% impost duties on cement (code of the Foreign Economic Activity Commodity Classification - 2523 "Portland cement, aluminate cement, slag cement, high-sulfate cement and similar hydraulic cements, pigmented or non-pigmented, ready-mixed or in form of concrete clinkers ").
The Antimonopoly Service believes that abolishing customs duties on cement will allow buying more cement outside the Russian Federation, particularly, in China and Turkey. In FAS Russia's view, abolishing the duties will lead to developing competition on the cement market, eliminating product deficit and ultimately decreasing prices. It will accelerate implementation of the national project "Affordable and Comfortable Housing to the Citizens of Russia".
Moreover, FAS Russia proposed to the Ministry of Economic Development to abolish import duties on unprocessed aluminium, except secondary aluminium and secondary aluminium alloys, in order to support competition on the primary aluminium market of the Russian Federation. Abolishing import duties was one of the requirements for approving the merger of "Rusal", "Sual" and "Glencore".
№ 507 Decree of the Government of the Russian Federation of 11th August 2007 abolished import duties on unprocessed aluminium from 11th September 2007.
According to Alexei Ylyanov, the Head of FAS Russia Department on Industry Control, opening markets for international competition becomes important and efficient instrument of antimonopoly policy and FAS Russia intends to actively apply it in the future.
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