News date: 7 November 2022
The International Trade Practice Team of Ilyashev & Partners Law Firm, headed by Partner Olena Omelchenko, protected the interests of domestic manufacturers of PVC profiles.
On 2 November 2022, the Interdepartmental Commission on International Trade decided to discontinue a safeguard investigation into the imports of PVC profiles to Ukraine, regardless of the country of origin and exports, without the application of special duty, which was opened according to the Decision of the Commission dated 27 August 2021 No. SP- 504/2021/4411-03.
In summer of 2022, acting in the interests of domestic manufacturers of PVC profiles in Ukraine, Ilyashev & Partners initiated the complaint to the Ministry of Economy and the Interdepartmental Commission for International Trade requesting to carry out a safeguard investigation into the imports of PVC profiles to Ukraine, which was opened at their request on condition of unblocking access to the world market of raw materials, in particular, polyvinyl chloride, importation of which to Ukraine was levied with a special duty at the level of 12% of the customs value.
As a result, along with the decision to discontinue the safeguard investigation, the Commission decided to suspend the special duties applied according to the Decision of the Commission dated 20 November 2020 No. SP-466/2020/4411-03 On the Application of Special Duties to Imports to Ukraine of Polymeric Materials Regardless of the Country of Origin and Exportation until the suspension of martial law in Ukraine.
Given the great windows demand, the temporary suspension of the special duty will help stabilize the window market in Ukraine.
“A significant change in circumstances in the commodity markets of Ukraine and the world in general, which followed after the full-scale invasion of the Russian Federation into the territory of Ukraine, prompted the Ministry of Economy and the Commission to make prompt, win-win decisions aimed at supporting economic activity in the country,” – Olena Omelchenko commented on the decision. – The Commission granted the request of domestic producers of PVC profiles to carry out a safeguard investigation into the imports of PVC profiles to Ukraine and suspend special duty for the import of polymeric materials to Ukraine, regardless of the country of origin and export for the period of martial law in the country, which will significantly reduce the cost of production of the end product”.
The suspension of special measures will allow domestic producers of PVC profiles, PVC pipes, cables, and many other representatives of various sectors of the economy to reduce the cost of production of end products, which, in turn, will improve the socio-economic performance of such enterprises and become more competitive both in domestic and foreign trade markets.