Kazakhstan Implements Zero Tariff On Wool Export

According to the news released by the atameken national entrepreneur association of Kazakhstan, Kazakhstan has cancelled the export tariff of uncombed and combed wool, capital.com reported on June 18.

In 2019, the chimkent branch of atamecon Association proposed to cancel the export tariff on wool. Export tariffs account for 10% of the cost of wool, the association said. Due to the small domestic demand for wool in Kazakhstan, the tariff increases the cost, which makes Kazakhstan's wool products lack of competitiveness in the foreign market.

The only wool processing enterprise in the city, chimkent cashmere Co., Ltd., has an annual wool processing capacity of more than 10000 tons, but the actual annual output is only 1000 tons. The reason is that the company mainly faces the Chinese market and pays customs duties, making it unprofitable to export to China. At present, the company can only use 1% (10 tons) of self-produced washed wool products, and the stock of washed wool has exceeded 1000 tons. Due to the failure to repay the loan and pay the fine on time, the enterprise has suspended production. The tariff increase not only affects the export of products, but also makes the only large wool processing enterprise in Kazakhstan on the verge of bankruptcy. For this reason, the zimkent Entrepreneurs Association has repeatedly called on the central government to study the abolition of wool export tariffs.

Since 2019, atamecon national entrepreneurs association has promoted the solution of this problem at different levels and finally made progress. On June 9, 2021, the Ministry of national economy of Kazakhstan issued an order, announcing that the export tax rate of uncombed and combed wool will be adjusted to 0%, which will be valid until May 1, 2023.

(source: Ministry of Commerce)