Manufacturers of polymeric materials claim that if duties are imposed on polymeric materials following a special investigation into their imports, the consequences for the industry will be disastrous, and this will also lead to higher prices for consumers.
Representatives of manufacturers of polymer materials said this at a press conference in the press center of Ukrainian News.
“The only polymer producer in Ukraine wants to close the market with draconian duties, depriving domestic producers of the opportunity to import similar polymers. What will it lead to? In Ukraine there are about 100 enterprises that process these polymers, in general, about 50 thousand people work at these enterprises, over the last For 3 years only import VAT, these enterprises paid more than $ 200 million, and many of them are the largest taxpayers in their areas. If the duty increases sharply, then is as follows: Most of our companies will stop working, for example, those who produce profiles for windows and doors from PVC “, – said the president of investment group” Dynasty “Denis Mirgorod.
According to him, as a result, consumers will be able to buy cheaper products from foreign enterprises. At the same time, some enterprises will be forced to raise prices for their products to compensate for the duty, which will lead to higher prices for consumers, in particular, the cost of housing will increase, since windows, doors, pipes that contain polyvinyl chloride. In addition, due to the increase in the cost of packaging, drinks, medicines and food in stores will rise in price.
“We have reason to fear that, after not receiving data from national producers, for some two to three months, the Ministry of Economy may introduce, if not final, then so-called preliminary duties for the duration of the investigation, and this process is completely opaque to manufacturers. doesn’t ask, nobody consults with us and information that would help to figure out what is true and what is not in the statements of Karpatneftekhim from us has not even been received from us, ”Mirgorodsky said.
According to him, manufacturers of polymer materials prepared an appeal to President Vladimir Zelensky, Prime Minister Denis Shmygal, Minister of Economic Development, Trade and Agriculture Igor Petrashko to draw attention to this problem.
In turn, the director of the trading house Eurotrubplast Igor Strelets said that the company sells finished products for 1 billion hryvnia (pipes for gas, water, sewage, special pipes and other types of products), last year it paid taxes to the budget for 163 million hryvnias At the same time, for the production of pipes, the company uses specialized grades of polyethylene that Karpatneftekhim does not produce, therefore for the company the introduction of a duty means an increase in the cost of raw materials for production.
“When introducing duties, even 6.5%, although there is talk of a larger amount, this is all the profit that our factories receive in the production of finished products. Therefore, we will be forced to simply close them, fire people, and transport finished products from the group’s plants to other countries, “he said.
The director of the company with foreign investments “Alyuplast Ukraine” Valery Lykhvar noted that the introduction of duties will also lead to negative consequences for the company.
“If a duty is introduced, the cost of production will increase accordingly. We will be forced to increase the price and be less competitive both in the Ukrainian and export markets. This will lead to a drop in sales, we will be forced to lay off workers and, in general, the appropriateness of producing products will be called into question in Ukraine, “he said.
Such large exporters as Yuzhkabel, Odessakabel, Prominvestplastik will also suffer from the introduction of the duty. During a press conference, their leaders said that the introduction of a duty would lead to a loss of the export potential of the industry, a decrease in foreign exchange earnings and a loss of positions in world markets.
The participants in the press conference were unanimous that the arguments presented by Karpatneftekhim in the statement to initiate the investigation were unsubstantiated, and the information submitted by them was manipulative, which would inevitably lead to the inability to analyze the situation and make an informed decision by the Commission, since some of them are unreliable, and some distorted.
The participants in the press conference were particularly outraged by the information about the upcoming introduction of preliminary barrage duties on the import of PVC and PE, because according to the legislation, for their justification and calculation, the Ministry of Economy should analyze the data of the enterprises involved in the investigation, which, at the moment, have not yet been sent to the Ministry .
As Ukrainian News reported, in February the Interdepartmental Commission on International Trade (MKMT) launched a special investigation into the import of polymer materials regardless of the country of origin and export. The investigation was launched in connection with the appeal of the Karpatneftekhim petrochemical enterprise (Kalush, Ivano-Frankivsk region). A special investigation was entrusted to the Ministry of Economy.