The proposal for the introduction of a zero rate is valid until March 31, 2028.
According to data from the Eurasian Economic Commission, the Russian side justifies its proposal by the shortage of terephthalic acid in the EAEU region. The measure is aimed at stimulating the production of polyethylene terephthalate and dioctyl terephthalate, which are necessary for the creation of packaging materials, plastic containers, as well as technical threads and fibers used in the production of linoleum, wallpaper, and other goods.
"The introduction of this measure will reduce production costs for polyethylene terephthalate and improve the competitiveness of Russian goods in the domestic market," the statement notes.
Reference:
According to the EEC, the current duty rate on terephthalic acid is 5% of the customs value, however, a zero rate has been applied since 2014.
