Lipetsk, Russia - Indezit International entered the legal dispute with Russian authorities claiming that the current custom duties on polyurethane should be decreased.
Indezit International, a producer of refrigerators and washing-machines, has entered the dispute with the Russian Custom Service, demanding a decrease of the custom duty on some materials for polyurethane production, mainly isocyanates.
This precedent could have serious consequences for the whole Russian polyurethane market, as if Indezit wins the lawsuit it may affect a large number of companies that are dealing with the materials for pothyurethane production.
"The company Indezit International has filed several lawsuits against the inspectors of Lipetsk department of the Custom Service. The purpose of the dispute was over the inspectors' decision to increase customs duty on the import of isocyanate "SUPRASEC 5005". The company uses this product as one of the components for the production of rigid polyurethane foam for thermal insulation. The supplier of the component is Huntsman Holland BV," the company's spokeperson said.
According to the heads of Indezit, the custom duty for this production should be set at 5%. This rate was set initially after the independent classification of goods on the basis of examination by the Scientific Research Institute of Polymers in Russia.
However, the representatives of Lipetsk customs say that according to studies conducted in the central customs office, these types of products belong to a different group of goods which should be the subject of 10% custom duty.
This precedent isn't unique for the Russian polyurethane market. Indezit International participated in legal proceedings with Lipetsk Customs Office in 2009. That dispute the company won. This year, a similar case happened in St. Petersburg, and shortly before in Irkutsk. Other companies that use isocyanates have reported similar problems.
According to Indezit, at the present time the quantity of the isocyanate produced across Russia doesn't meet demand, which makes its import inevitable.