Ministry of Digital Transformation makes ICIT to review decision to restrict import of wires

KYIV. Sept 27 (Interfax-Ukraine) – The Interdepartmental Commission on International Trade (ICIT), by its decision of September 23, began revising its decision of April 23 on the introduction of a 23.5% special duty on imported wire products, which was to come into force in the middle of October.

As stated in the report of the ICIT in the Uriadovy Kurier newspaper, the revision was initiated by the Ministry of Digital Transformation of Ukraine, and the Ministry of Economy was entrusted to implement it.

"The information submitted by the Ministry of Economy shall be based on facts, and not on unfounded statements or assumptions," the commission said.

Comments and information within the framework of the revision will be accepted until September 30 of this year.

As reported, on September 14, 2021, the Interdepartmental Commission on International Trade (ICIT) published its decision of April 23 this year in the Uriadovy Kurier newspaper on the application of a special duty on the import of wires to Ukraine, regardless of the country of origin for a period of three years: in the first year of the duty application it will be 23.5%, in the second – 22.3% and in the third – 21.2%. The decision will take effect 30 days after publication.

"This case is unprecedented, since the decision of the commission was not published for almost five months due to pressure from some MPs and officials who lobbied for the interests of importers," Olena Omelchenko, a partner at Ilyashev & Partners, which represented the interests of Ukrainian manufacturers, said.

At the same time, the American Chamber of Commerce in Ukraine and network communication operators opposed it.

on July 28, 2020, at the initiative of the Odeskabel and Yuzhcable factories (in total, they produce over 50% of these products in Ukraine), the ICIT initiated a special investigation into the import of insulated wires, cables and other insulated electrical conductors to Ukraine, and also fiber optic cables.

During the investigation period – from the beginning of 2017 to the middle of 2020 – import volumes surged by 128.8%, the share of imports in total production – by 180.4%, in consumption – by 74.8%.

According to the State Customs Service, imports to Ukraine under code heading 8544 insulated wire, cable and other insulated electrical conductors, optical fibre cables in the first half of 2021 amounted to 30,200 tonnes by $310.95 million, having increased by 24.6% vs. 44.9%.

The Ukrelektrokabel Association, uniting 16 enterprises, including 12 manufacturers of cable products, criticized attempts of the Digital Transformation Ministry to review the decision of the Interdepartmental Commission on International Trade.

"This creates an extremely dangerous precedent, proving that legal mechanisms for protecting the internal market are giving way to informal agreements again, as it was ten years ago. We are surprised that the Ministry of Digital Transformation, which is not a member of the commission, is not responsible for the development of industry, rudely intervenes and, by its actions, destroys the national producer," head of the association Anatoliy Pushkar said.