UAE likely to revoke scrap export taxes

DUBAI - The UAE authorities are likely to revoke the taxes recently imposed on scrap export from the UAE to other parts of the world to ease the congestion caused by scrap shipments at the domestic ports, said a close source to the development.

By Salah Eldin Eltayeb

Published: Sun 31 Oct 2004, 10:04 AM

Last updated: Thu 2 Apr 2015, 12:45 PM

The jam of scrap shipments is causing undesirable problem, which is urgently needed to be tackled, he added. There is no way out of the problem, but to allow all these shipments to go without paying the taxes imposed.

"Ships carrying thousands of tonnes of scrap are stranded in the UAE domestic ports in Northern Emirates waiting for the authorities to revoke the Dh250 per tonne levy on exports, and also for the Asian major importers to remove restriction preventing the entry of scrap. The authorities will have no problem to revoke the imposition of the Dh 250 taxes per scrap tonne to allow these consignments to cruise towards their destinations," the source said.

"I believe that the scrap traders will have no problem to pay the levy imposed by the government and sail their way out, but the problem is the restrictions imposed by the importer including India, Pakistan and China. They have imposed some restrictions on what is called — hazardous waste. This would mean that if the shipments moved this morning to their destined direction will again suffer a problem in entering these countries and hence they double their losses, said the source. The ports authorities will not allow these consignments to cram around the ports berth delaying the routine operations of the port.

Sharjah -based scarp trader Mohammed Abu Alanain, said," We are in a dilemma now — we neither can withdraw our consignment nor we can pass out of the port.

The taxes imposed is very untimely and we were not given sufficient time to readjust our conditions. We have signed a number of delivery contracts with many scarp traders in Bangladesh, China and India which we shall not be able to carry out, said Abu Alainain. The problem will aggravate if these shipments are left stranded for more days without allowing them to sail, he said. There will be a lot of losses both for us and the scrap traders in the importing countries, he added. It is essential for the UAE federal government authorities including the Ministry of Economy and Commerce, the Federal Chamber of Commerce and Industries to interfere to solve the problem, urged Abu Alanain.

Salam Sharif, Middle East Ambassador to the Bureau of International Recycling, earlier said, "Until the situation changed, all shipments will remain in the pipeline at domestic ports and all pending contract will continue to suffer. It is the suppliers who are the victims."