The Interdepartmental Commission extended the validity period of the zero rate of export customs duty on the export of wool

During the meeting of the Interdepartmental Commission on Foreign Trade Policy and Participation in International Economic Organizations, held on February 22 under the chairmanship of Deputy Prime Minister - Minister of Trade and Integration Serik Zhumangarin, a number of decisions on foreign trade regulation were adopted.

Thus, it was decided to extend the validity period of the zero rate of export customs duty on the export of wool until December 31, 2024. This issue was initiated by the Ministry of Agriculture and was raised earlier by business at a meeting with Serik Zhumangarin in Shymkent.

According to the Ministry of Agriculture, about 40 thousand tons of sheep wool are produced annually in the country, of which thin and semi-thin are subjected to primary processing, and this is only 20% of the total production. If the export customs duty is abolished, the income from the sale of shorn wool directly from farmers will increase by 20-25%, from processing enterprises — by 10%. In addition, farmers' interest in breeding will increase, which will contribute to an increase in the number of fine-fleeced sheep.

The decision of the Interdepartmental Commission approved the reduction of export customs duties on cattle hides from 200 to 100 euros per 1 ton and the abolition of export customs duties on small cattle hides until December 31 of this year.

Currently, there is a situation when, with an annual increase in the number of cattle, low export volumes and demand in the domestic market, the volume of unprocessed leftover hides increases. In particular, in 2020, compared to 2019, the growth amounted to 406 thousand units, or 15.7%. It is expected that the reduction of export customs duties on unprocessed hides of agricultural animals will create market demand for them, producers and suppliers will be interested in improving their quality. This will give an impetus to the activation of the activities of procurement organizations, which will contribute to the development of the processing industry, the interest of personal subsidiary and peasant farms in the growth of production and sales of products.

Also at the meeting, the Interdepartmental Commission considered proposals to reduce the rates of import customs duties on fish feed, on some types of attraction equipment. It was decided to establish a temporary ban for a period of six months on the export of coal and lignite (brown coal) from the territory of the Republic of Kazakhstan by road. The validity period of the quota has been extended for 6 months for the export of live cattle, sheep and goats from the territory of the Republic of Kazakhstan, with the exception of the breeding stock of cattle and Small cattle.