GCC PE, PP exports to Europe could be affected by higher duties

06 June 2013 11:49  [Source: ICIS news]

LONDON (ICIS)--Exports of polyethylene (PE) and polypropylene (PP) from countries in the Gulf Cooperation Council (GCC) region to Europe could be affected when an increase in duties takes effect from January 2014, sources said late on Wednesday.

“We are concerned about finances next year – we [will] pay higher duties in Europe next year,” a Middle Eastern PE producer said. “We’re concerned about netbacks rather than pricing. Duties [GCC producers are] paying at the moment are 3%, but they’re pulling the GCC out from this [special rate].”

The increase in duties from 3% to 6.5% in January next year results from the GCC countries – Saudi Arabia, Kuwait, Bahrain, Qatar, the United Arab Emirates and Oman – no longer being considered by the World Bank to be developing countries.

“The GCC is not a developing country,” the source continued. “From January we'll be paying 6.5%. It won't deter us from selling to Europe, but we'll have to look at this as we go on.”

A Middle East PP producer plans to pass the increased costs on to customers.

“There’ll be an increase in duties,” the source said. “We will not send less to Europe – customers will have to take the increased costs. Europe will need volumes anyway, so the only impact will be customers facing higher prices.”


By: Jo Pitches
+44 208 652 3214



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