FCA - UAE,Federal Customs Authority -United Arab Emirates

FCA - UAE,Federal Customs Authority -United Arab Emirates

UAE doubles import duty on rebar to 10%
Customs entry points of the UAE began early January to implement the Cabinet decision to increase imports duties on iron and rebar from 5% to 10%; to provide trade protection for national iron products and anti-dumping practiced by some international companies producing imported iron in local markets.

HE Ali Al Neyadi, Customs Commissioner, and Chairman of the FCA said in a press statement that the lifting of customs duties on rebar and iron comes within the framework of the GCC initiative to be implemented at the level of the GCC countries.  Not only the UAE, in order to protect the national industry and anti-dumping in the GCC.

HE pointed out that the increase in duties comes in implementation of the decision of the Committee on Financial and Economic Cooperation of the GCC countries to approve the lifting of tariffs on imports of iron and rebar from 5% to 10% on early January 2019. As well as the agreement of the HS Committee for the classification of goods in the GCC countries at its forty-fourth meeting. So that, customs entry points in the country have taken the necessary customs procedures to implement the decision at the state level.

His Excellency stressed that the decision will be implemented for one year and that the Ministry of Economy will evaluate the results, then the results will be submitted to the Council of Ministers to take the appropriate decision.

“The customs sector plays an important role in enhancing the competitive advantage of national products and protecting them against harmful commercial practices especially dumping, through the use of customs duties as a protection tool and achieving fair competition between national and imported products in local markets” said, Al Neyadi

HE mentioned using customs duties as a tool for the protection of national products is a universal principle adopted by the international trade and customs agreements issued by the WTO and the WCO, and all countries are entitled to apply it in the case of proven dumping.

However, HE added that the iron and steel industry is one of the basic industries in the national economy. UAE iron products have become a distinctive brand, it plays an important role in supporting the process of sustainable development in the country, which requires protection from the dumping practices of some importers, producers and international companies that resort to selling iron in the country's markets at reduced prices compared to the prices of the national product, despite the superiority of the national product in advantages and characteristics.

On the other hand, the statistical data of the Authority showed that the value of the country's trade of rebar and iron reached to 1.1 billion dirhams (444.4 thousand tons) during the first 9 months of 2018 while the value of the country's imports amounted to 656 million dirhams (268 thousand tons). However, the value of the country's exports amounted to 392 million dirhams (168.4 thousand tons) and the re-export value is AED 26 million (8,000 tons).