New decree by Ukrainian Cabinet is an impediment for scrap exports

New decree by Ukrainian Cabinet is an impediment for scrap exports

Cabinet of Ministers of Ukraine released a decree dated January 31, 2004 with regard to the requirement of new registration for the balance of export contracts latest by the first day of March 2004. According to the decree, in case the existing steel scrap export contracts are not re-registered by March 1, 2004, the export of steel scrap becomes impossible. The decree issued by the Cabinet of Ministers of Ukraine calls for the re-registration of steel scrap export contracts that have already been registered and started under the order by the decree no 1653 dated November 4, 2002 with the implementation of €30/mt export tax to take the scrap exports out of the country under control. Furthermore, as from February 10, 2004, performances of export shipments under only the re-registered contracts are allowed, also according to the decision of the cabinet of Ministers of Ukraine. In view of the release of such decree issued only a couple of days ago, it is almost impossible for the contract holders to re-register their existing contracts in such a short period of time. It is needless to say that will put the export shipments under pressure as no export ex Ukraine could be effected after February 10, 2004, i.e., today. The Cabinet asked the Ministry of Economics, Ministry of Internal Affairs and the Ministry of Industrial Policy to confirm the balance scrap exports for the year 2004 until February 10, 2004. In line with such request, the tax authorities in Ukraine will perform tax registration of scrap deliveries only according to the contracts that have been re-registered in the Ministry of Economics.