In a recent move, the (Abu Dhabi) UAE bans export of scrap and waste paper via a circular issued by the Abu Dhabi Department of Economic Development (ADDED).
Tenure of Ban
- Abu Dhabi, UAE bans export of scrap and waste paper for four months commencing from May 15th, 2020.
- The tenure of ban can further be extended by a decree issued by the UAE’s Ministry of Economy, MOE, No. 1/77 of 2020.
Objectives of Ban
- The under-secretary of ADDED, Rashed Abdul Karim Al Balooshi, further states that
- Abu Dhabi, UAE bans export of scrap and waste paper to aid business continuity of local production facilities.
- He further underscored that this export proscribe fortifies access of local producers to the raw material supplies required for their manufacturing operations.
- This will bring some succor to local private companies who are facing challenges rooting from the Covid-19 pandemic.
- In tandem with MOE’s decree for UAE Companies, ADDED ordered such export interdiction to boost the national economy by further diversifying local sourcing of raw materials and production inputs like paper and cardboard resources.
- Especially SMEs are benefitted from this order by being able to substitute local sourcing with the import of raw materials.
- The data shared by Abu Dhabi Customs reveals that around 295 lakhs-kilograms of paper waste were exported in 2019 while this figure was just 22 lakhs-kilograms in 2018.
- Considering such a huge surge in the export of paper waste, the UAE Government has also taken measures to ensure Waste Paper Recycling by the national companies.
- The year 2019 also witnessed a quadrupled surge in the export of iron scrap to approximately 6,000 tonnes.
- The effectuating impact of such a banning order, hence, will enhance and amplify the country’s self–sufficiency for its raw material requirements.
- Moreover, this will also condense the industries’ dependence on imports for sourcing various inputs and there will be consequent savings in high procurement costs as well.
- Such an initiative also nurtures national wealth by augmenting the resources such as iron, aluminum, copper, and the like mobilized by the industries.
- The articles of the Table of Economic Activities and Violations in Abu Dhabi stipulate financial penalties or closure of facilities on flouting of this new rule banning the export of scrap and waste paper.
- The consequences of such a nature apparently will have a deterrent effect on the companies involved in the export of scrap and waste paper.
Banning the export of scrap and waste paper is a swift and prompt measure in the times when the country is facing demand-supply mismatches under the cloud of Covid-19.
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