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Ilyashev & Partners Achieved the Imposition of Safeguard Duties on Imports of Polymeric Materials

News date: 25 November 2020

The team of International Trade Practice of Ilyashev & Partners led by Partner Olena Omelchenko has successfully protected the interests of Karpatnaftochim LLC in a safeguard investigation regarding the import of polymeric materials to Ukraine regardless of country of origin and export.

On November 20, 2020, based on the results of the safeguard investigation, the Interdepartmental Commission on International Trade decided to apply definitive safeguard measures on imports to Ukraine of suspension polyvinyl chloride and white polyethylene granules, which can be classified by UCG FEA (Ukrainian Classification of Goods of Foreign Economic Activity) codes 3901 20 90 00 and 3904 10 00 00, regardless of country of origin and export.

Safeguard measures are imposed for a period of three years in the form of a safeguard duties amounting to:

  • 12.4% – from the date of imposition of safeguard measures;
  • 12.0% – after 12 months from the date of imposition of safeguard measures;
  • 11.5% – after 24 months from the date of imposition of safeguard measures.

“During the investigation we have conducted a study of import volumes of polymeric materials to Ukraine in absolute terms, as well as of the share of imports in the production and consumption of goods in Ukraine. The study confirmed the sharp increase in imports, and, as a consequence, serious injury to domestic producers and imbalance to the benefit of foreign producers-suppliers of goods to Ukraine,” Olena Omelchenko commented on the decision. “The Ministry of Economy and the Interdepartmental Commission on International Trade took action to address the problems of the domestic producers and made a timely decision that will preserve jobs at one of the best enterprises in the Ukrainian chemical industry”.

It should be reminded that the decision to initiate a safeguard investigation on the results of consideration of the complaint prepared on behalf of Karpatnaftochim LLC by the international trade team of Ilyashev & Partners Law Firm was made by the Interdepartmental Commission on International Trade on February 21, 2020. The investigation lasted 9 months, during which the Interdepartmental Commission on International Trade imposed a provisional safeguard measure for the first time in ten years.