Analysts of the Economic Security Bureau of Ukraine have found that since the beginning of 2022, more than 220 thousand tons of scrap metal worth UAH 2.3 billion have been exported from the customs territory of Ukraine. At the same time the risk associated with the export of scrap metal under the guise of "cover" goods can reach hundreds of millions of hryvnias.

In particular three companies have been identified that evaded paying UAH 65 million in duties.

Since scrap metal is a strategic raw material for the country's metallurgical industry in order to provide domestic enterprises with sufficient raw materials the legislation sets the export duty rate for ferrous waste and scrap at EUR 180 per ton.

However a number of companies use "cover" codes and descriptions of goods in customs declarations when exporting scrap metal. Such manipulation allows them to export goods without paying export duty.

Among the most common schemes is the declaration of scrap metal to the customs authorities under the guise of second-hand metal products or primary forms of metal.

During the information and analytical work the employees of the ESBU discovered 3 enterprises that by manipulating the nomenclature of goods, carried out export operations without paying customs payments in the amount of more than UAH 65 million. Analytical products have been handed over to Bureau detectives.