Proposal to Extend the Ban on Exporting Scrap and Waste of Ferrous Metals from Kyrgyzstan

The Ministry of Economy and Commerce has initiated an extension of the temporary ban on the export of scrap and waste of ferrous metals from Kyrgyzstan. The corresponding draft document has been submitted for public discussion.

Essence of the Proposal

The draft government resolution implies an extension of the existing ban on the export of ferrous metals and charge ingots for six months. The ban covers goods designated by code 7204 of the EAEU Customs Nomenclature.

Goals of the Ban

The justification for the initiative states that there are five major processing plants operating in Kyrgyzstan: LLC "Metal-Ken," LLC "Asia Steel," LLC "MPZ Frunze," LLC "Lahore Steel Mills," and LLC "Vulkan Plus," which have a total processing capacity of about 490 thousand tons per year. Previously, export customs duties on scrap and waste of ferrous and non-ferrous metals were introduced to support the metallurgical industry; however, they did not significantly reduce export volumes, as noted in the justification report.

The introduction of the ban will help meet the high demand for quality secondary scrap metal in the domestic market.

Export of processed products from scrap and waste of ferrous metals will not be subject to the ban.

If the draft is approved, the resolution will come into effect 15 days after its official publication.