29 June, 2018
Turkey’s Ministry of Economy proposed import duties on a list of US products against Trump administration’s steel and aluminum tariffs in early June. According to the Official Gazette dated June 25, safeguard measures on selected products entered into force on June 21. Consequently, American PVC will be subject to an extra 25% duty on the top of 6.5% customs and 18.81% anti-dumping duty.
Earlier on, the Ministry issued an amendment by late May to reveal that goods classified in certain chapters of Turkey’s customs tariff schedule, including PVC (polyvinyl chloride) would no longer be imported from the US under inward processing regime.
These goods could only be imported from Europe, Africa, Asia, Middle and South America, Oceania, Canada, and Mexico as was previously mentioned in detail in ChemOrbis Plastics News Update: Turkey to restrict US imports under inward processing regime.
Turkish players continue to evaluate the revision in inward processing regime and the additional duties on US PVC which aimed at restraining imports from the country. Expectations are calling for different scenarios.
“American PVC seems no longer affordable for converters even if re-export license remains in place unless a buyer has strong finance sources. Consumers will have to shift their attention to alternative sources or the domestic producer,” a trader commented.
A profile maker reported that there have been no supply issues despite diminishing US cargos in the market. “Offers for other origins including Brazilian, Saudi Arabian, Russian and Ukrainian have counterbalanced the lack of new shipments from the US to some extent. Yet, we are still waiting to receive a clearer view regarding the process about American PVC,” he marked.
Some players, however, find the current prices of other dutiable PVC cargos expensive. The revision in inward processing regime is yet to become official and the course might reverse due to complaints from manufacturers, they argue.
In 2017, US had a remarkable market share of around 14% in Turkey’s import PVC market. Last year, Turkey imported more than 103,000 tons of US PVC, leading the origin to become the second largest supplier following France.