Scrap over scrap

India's checks, domestic tax hits UAE's scrap trade

 
Last Updated: Saturday 04 July 2015

scrap traders of the United Arab Emirates (uae) are up in arms against the country's new scrap export rules, which they fear would be devastating for its us $ 4.08 billion scrap business. The imposition of a new tax and set of restrictions would further harm the business that is already suffering the burden of stricter rules by importing countries, they say. Thousands of tonnes of scrap are already held up in Dubai due to the new tax of us $68.06 per tonne of scrap export.

Most of the scrap from the Middle East lands in Dubai for being exported to south and east Asia. India and China are the biggest importers. The business has already been hit by India's recent measures to regulate its import (see 'Just Dump It', Down To Earth, November 15, 2004). Exports to China have also slowed down after the introduction of its new scrap import rules last year. And now the uae government has introduced new rules for the scrap coming into Dubai -- entry only through notified ports and "per-shipment inspection certificates". The government has warned that any violation of its orders would invite stern action.

"We call upon the uae government to urgently reconsider its decision...it will cause a lot of harm," the Khaleej Times quoted Haji Ibrahim Daood, a prominent scrap trader in Sharjah, as saying. "We are not against the system if it helps regulate the industry. But that is not the case. Dubai is a central point for the region's scrap export and any tax will be harmful for the business," warned another scrap trader. Salam Sharif, Middle East ambassador to the Bureau of International Recycling, says: "Until the situation changes, all shipments would remain in the pipeline and all pending contracts would suffer."

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