Armenia extends terms of duty on fittings

ArmInfo.  Armenia extends the deadline for collecting state duty on reinforcement imported from third countries for another 6 months. The decision to this effect was made at a meeting of the RA government on August 7.

According to RA Minister of Economy Gevork Papoyan, over the past few  years, the country's investment in the processing of ferrous and  non-ferrous scrap metal has amounted to $150 million, and thousands  of new jobs have been created. Currently, the following foundries  operate in the Republic of Armenia:  Charentsavan Machine-Tool Plant  OJSC, Nikol Duman JSC, Dzulakentro OJSC, and the foundries of GTB  Steel LLC and Karakert Stone Smelting Plant OJSC are being built and  reconstructed, which is aimed at developing the metallurgical  industry of the republic. The production capacity of the foundries  operating and under construction in the republic will increase the  volume of local production of steel reinforcement, therefore it is  necessary to ensure equal competitive conditions between similar  products manufactured by local manufacturers and imported from third  countries, primarily from Iran. The basic duty of 29 thousand drams  will be applied to imported metal products. After meeting domestic  needs, it may be necessary to think about exporting finished  products.

Earlier, the RA government banned the export of ferrous and  non-ferrous scrap metal and waste containing them by a number of  decrees. These restrictions are aimed at stimulating the processing  of ferrous and non- ferrous scrap metal on site, extracting metals  from waste and producing products with higher added value.  The  majority of the target product imported to the Republic of Armenia  from 2022 to 2024 - 75.5%, and in general terms - 80.2%, was imported  from the Islamic Republic of Iran. The analysis shows that the price  of 1 ton of goods (reinforcement bars) of the commodity item from  Iran (excluding VAT) in Armenia ranges from 200 thousand to 205  thousand drams. The cost of 1 ton of steel reinforcement produced in  Armenia is about 230-250 thousand drams.

According to statistics, the import of steel reinforcement from the  Islamic Republic of Iran to the Republic of Armenia is continuously  growing. According to the research conducted by the Commission for  the Protection of Competition, in 2023, compared to 2022, the average  weighted customs value of 1 ton of reinforcement decreased by 52  thousand drams - from 269 thousand to 217 thousand drams. The average  price of 1 ton of reinforcement produced in the Republic of Armenia  is 259,600 drams, the minimum and maximum prices are 215 thousand and  300 thousand drams, respectively.