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UAE lifts ban on scrap exports and introduces tax

The United Arab Emirates (UAE) decided to end its ban on iron scrap exports and opt for export taxes.

UAE lifts ban on scrap exports and introduces tax

According to the statement of the United Arab Emirates government, the export ban on scrap, waste paper and other products has been lifted. It was reported that a tax of AED 400/mt was imposed on scrap exports registered under GTIP codes 720450, 720449, 720441, 720430, 720429, 720421 and 720410.

Ferrous scrap exports will now be subject to a tax of AED 400 ($109) per tonne. While this strategy is envisaged to increase cross-border trade in the Middle East and North Africa (MENA) region, the challenges the UAE may face for local steel producers are also taken into account. At the same time, local exporters may also bear export taxes, which may affect their global competitiveness.

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