Posted on 29 Feb 2024
The Iranian government has officially announced lower export duties on semi-finished products and steelmaking raw materials effective retroactively from 21 March 2023. The backdating of reduced tariffs by almost a year was unexpected and has been welcomed by exporters, notes Kallanish.
Until now, the duties had been on hold due to a court decision and therefore did not require payment. However, exporters had priced in duties based on higher duty levels in the previous round of tariffs.
The export tariffs have been set at 20% for magnetite iron ore and 2% for hematite. These had previously each been at 20% in the last round of duties. Export duties on iron ore concentrate were reduced from 20% to 5% and iron ore pellet from 20% to 2%, while direct reduced iron remains unchanged at 5%. Slab and billet were reduced from 2% to 1%. The duties are calculated on fob values.
"The duty rates for the previous period and from today will relieve exporters. Industry players welcome the decision," comments a trader.
Source:Kallanish
