Apr 17, 2020
Colombian steel chamber requests government aid to delay steel shipment taxes
2020-04-21
Colombian Steel Chamber (Camacero) has requested government help on Friday to delay steel importing and IVA taxes for 90 days, so the industry can unload existing shipments stopped at local ports.
Camacero said by delaying steel importing and IVA taxes the Colombian ministries of economy and transportation would relieve the sector, which has “weak liquidity” to pay for both the steel shipments and the steel-related taxes.
Camacero said there is currently 130,000 mt of steel stocked at Colombian ports that need to be released. Withholding the steel shipments any longer would make the local steel industry “collapse,” Camacero argued.
Camacero added that another 300,000 mt of steel imports should arrive at Colombian ports “in the next few months,” and those orders also need to reach their customers. Camacero said that in the next “two weeks” 14 vessels loaded with steel that should arrive at already busy Colombian ports.
Given the existing steel inventory stopped at local ports, the additional steel shipments would result in the saturation of Colombian ports, which would have no additional space to store the upcoming orders.
Camacero estimated the local steel industry is currently operating at 40 percent its capacity.
Colombia, like other South American countries, including Argentina and Peru, are in a strict lockdown with closed borders.
Source: Steel News
