Russia announces timber export restrictions
On November 30th, TASS News announced the latest news on Russian timber and metal export restrictions.
The export tariff rate for ferrous metal scrap is set at 5%. The Cabinet stated: "The export tariff rate for ferrous metal scrap including iron, cobalt, nickel, etc. is set at 5%, but not less than 100 euros per 1 ton; for scrap steel is 5%, but not less than 70 euros per 1 ton. From 2022 It will take effect on January 1st, 2010, and last for 180 days."
The Russian government has also imposed broader restrictions on timber exports:
From January 2 to December 31, 2022, the export tax rate for some woods (oak, beech, ash) with a moisture content of more than 22% and a thickness and width of more than 10 cm will be increased: from 250 euros to 370 euros per cubic meter.
"The increase in tariffs will restrict the export of logs under the guise of sawn timber." The cabinet said, noting that tariffs only apply to exports outside the Eurasian Economic Union.
Old news review:
Since July 1 this year, Russia has imposed a new tariff rate on wood exports with a humidity exceeding 22%. The tax rate for coniferous forest and oak is 10%, and the price per cubic meter does not exceed 13 Euros and 15 Euros respectively. Previously, this type of wood was not taxed. The export tariff rate for beech and ash is also 10%, but the price per cubic meter is not less than 50 euros.
According to information from the Cabinet Press Office, this decree has been approved by Prime Minister Mikhail Mishustin.
In addition, the government has extended zero export tariffs on tungsten ore and concentrates for two years (until December 31, 2023). The News Service said that the decision was made to support manufacturers and prevent their business activities from being stopped due to a lack of working capital.
The information office stated that in the decree signed by Mishustin, the current export tax rate complies with the World Customs Organization’s cargo description, the seventh edition of the Harmonized Coding System, and the laws of the Eurasian Economic Union.
Since Manzhouli was affected by the epidemic and closed its port on November 30, imports of timber from Russia will inevitably stagnate for a while. Little lazy reminded that the idea of a batch of timber before the tax increase on January 2 is basically difficult to realize. For domestic timber importers, the only feasible solution at the moment is to use the shipping line above Northern Europe for transportation. However, given the unusually cold weather this year, 24 ships that circled Russia on the Arctic Line were frozen last month. So far, there are still ships that have not been completed. Get out of trouble.