Russian Steel’s position on increase of import customs duties on metal equipment

Since Russia became a WTO member a significant number of machine-building companies have shown initiatives for need to adapt and support the industry.

Russian Steel Members are sympathetic to these initiatives but have to state that a lot of machine-builders’ propositions, including the increase of import custom duties on metal equipment and components up to “ceiling-binding” tariffs, will lead to limiting imports of high-quality equipment and components. Such outcome has been recently confirmed by the analysis made on OMZ Group’s proposals to increase import customs duties on metal equipment and components for 9 items of FEACN CU.

Inappropriate and poorly examined decision-making is unacceptable to the balanced development of Russian economy and complex strengthening of the competitiveness of its basic industries. Machine-builder’s propositions require particularly profound elaboration with regard to: allocation of equipment that has no analogues produced in Russia; specifics of priority projects listed in Strategy for Russian Steel Industry Development for the period until 2020; impact analysis of the proposed solutions.

The above mentioned conditions necessitate a thorough analysis of Russian machine-builder’s capabilities to meet the needs of the Russian strategic industries, and not only steel but also chemical, oil refining, petrochemical, gas, food, machine-building, aircraft manufacturing, energy and public service sectors.

Russian Steel on its part confirms readiness to hold a wide range of consultations with all relevant companies and groups in order to come up with rational solutions oriented on keeping the balance of intersectoral interests.

The report on analysis of OMZ Group’s proposals conducted by Russian Steel was presented to the Ministry of Industry and Trade of the Russian Federation on September 19, 2012. On September 28, 2012, Russian Steel sent an official invitation to MettalurgMash, which has OMZ Group among its members, to participate in consultations within a framework of Interdisciplinary Dialogue, a fairground established in 2011 upon recommendations of the Ministry of Industry and Trade of the Russian Federation in order to prepare and submit agreed decisions on existing issues to the authorized public authorities.