Economy, Business And Markets

New Duty on Steel Imports From Sept.

New Duty on Steel Imports From Sept.
New Duty on Steel Imports From Sept.

The Iranian Parliament has projected a new duty on steel imports, likely to be effective from September this year, according to the ICANA news agency, which is affiliated to the parliament.

The duty is 100,000 Iranian rials/ton (about $25/ton) of imported material and will be imposed on all steel products during Iran’s sixth five-year development plan, running from 2017 to 2023.

The duty will cover billet, beam, strips, tubes, pipes, stainless steel and scrap, S&P Global Platts reported.

The duty will be imposed in addition to all import taxes already in place and the funds raised from it will be used for the development of the country’s national railroad system.

“The new duty will almost certainly cause an increase in production costs for downstream industries,” said Amirhossein Kaveh, secretary of the Iranian Syndicate of Steel Pipe and Profile Manufacturers.

The Iranian pipe industry is currently under considerable pressure and a part of its capacity is idle as a result of a slump in demand and high production costs.

“The Iranian government is following a highly protective policy for the upstream steel industry and this has increased production costs for downstream users,” Kaveh said.

The new duty would mark the third increase in import costs since January 2016.

Kaveh noted that the syndicate has asked the government to cancel the new duty.

At present, import duties are at 15% for semi-finished products; 20-26% for flat products (excluding stainless steel) and 26% for most long products, including I-beams and H-beams.

The import duty on scrap is 4%, the “lowest possible” according to Iranian customs administration.


Add new comment

Read our comment policy before posting your viewpoints