Duty on metal fitting import to be raised in Armenia

ArmInfo.  Armenia will increase the state duty on imported metal rebar from 29 times the base duty to 55 times the base duty. The National Assembly of the  Republic of Armenia will discuss amendments to the law "On State  Duty" proposed by MPs Sergey Bagratyan and Narek Ghahramanyan in the  first reading at its plenary session on November 11.

As Sergey Bagratyan noted in his speech, the government has  previously repeatedly extended the ban on the export of ferrous and  non-ferrous scrap and waste metals. Furthermore, a uniform state duty  of 29,000 drams per ton has been established for the import of  finished metal rebar from non-EAEU countries.  However, due to the  devaluation of the Iranian currency and the reduction in the cost of  Iranian products, the average customs value of one ton of rebar has  recently decreased by approximately 35,000 drams. This has created an  unequal competitive environment for rebar importers and  manufacturers. "With the current decision, we want to balance the  situation," Bagratyan said, adding that the bill proposes raising the  customs duty on rebar imported from Iran from 29,000 drams per ton to  55,000 drams. Bagratyan noted that his government colleagues have  proposed setting the state duty at 45,000 drams.

In turn, RA Deputy Minister of Economy Edgar Zakaryan acknowledged  that local producers are currently facing certain difficulties. Over  the past few months, the cost of imported metal rebar has decreased  by approximately 47,000 drams per ton. "Our colleagues propose  increasing the state duty from 29,000 drams per ton to 55,000 drams.  However, we conducted specific calculations to avoid relying on the  devaluation of the neighboring country's national currency, and  instead to consider dumping factors that directly impact competition.  This led us to a figure of 45 times the amount, that is, setting the  state duty at 45,000 drams," the Deputy Minister stated. He noted  that domestic producers sold 240,000 tonnes of rebar in the country's  domestic market in 2023, 251,000 tonnes in 2024, and 321,000 tonnes  in the first nine months of this year.  Imports of steel rebar in  2025 already amounted to 130,000 tons. Meanwhile, the same 130,000  tons were supplied to the domestic market in 2023, and 164,800 tons  in 2024. The deputy minister reported that two rebar production  plants were launched this year alone. Currently, there are three  plants in the country producing the finished product. By the end of  the year, another plant will begin producing the finished product.  Zakaryan emphasized that all three plants are already capable of  meeting the required domestic production volumes. He emphasized that  with the proper certification process, the opportunity to export  finished products will also arise.

According to statistics, imports of steel rebar from the Islamic  Republic of Iran to the Republic of Armenia are steadily growing.  According to early studies conducted by the Commission for the  Protection of Competition, the average weighted customs value of 1  ton of rebar decreased by 52,000 drams in 2023 compared to 2022, from  269,000 to 217,000 drams. It was noted that the average price of 1  ton of rebar produced in the Republic of Armenia is 259,600 drams,  with the minimum and maximum prices being 215,000 and 300,000 drams,  respectively. According to data from the Armenian Ministry of Economy  as of the end of October, local metal production volumes increased  significantly as a result of the export ban. 

Specifically, in 2024, the production of unalloyed steel for castings  increased by 2.4 times, the production of steel pipes, hollow  sections, and their fittings by 10.8%, household goods cast from  aluminum by 5.8%, and metal structures and their parts made of iron,  cast iron, steel, or aluminum by 19%. As a result of the measures  taken by the government, investments were directed into the industry  in 2022-2025, including foreign ones (Karakert Stone Smelting Plant,  GTB Steel, Dzulakentro, Edmet, Aske Group, Asedl).  According to the  Ministry of Economic Development's forecasts, the total investment  volume for the above-mentioned programs will amount to approximately  $100 million, resulting in the creation of 550-750 new jobs, and an  increase in the use of local ferrous and non-ferrous scrap metal by  65-70%, bringing the annual scrap consumption volume to 250,000 tons.