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. Last Updated: 07/27/2016

Export Duties on Aluminum Axed as Tolling Changes Eyed




Russia suspended a 5 percent export duty on aluminum for the first half of 2000 from Monday, following publication of a resolution signed by acting President Vladimir Putin in the official gazette, Rossiiskaya Gazeta.


First Deputy Prime Minister Viktor Khristenko was quoted as saying last week that the measure was aimed to cushion changes in tolling, a system used in the aluminum sector.


Under tolling, raw materials used in aluminum production, bauxite or alumina, are imported (external tolling) or bought domestically (internal tolling), processed at Russian plants for a fixed fee and then exported tax free.


Khristenko said that internal tolling would be abolished in 2000.


Traders operating the external tolling system would have to pay value added tax of 20 percent when importing raw materials, which would be refunded when the finished aluminum was exported.


But the resolution published Monday contained no reference to tolling, or to changes in VAT collection.


A spokeswoman for the State Customs Committee was unable to say whether the customs had already started collecting VAT on alumina or bauxite.