After Poland's demanded respite for the importers, EU intends to lower the excise on pure primary aluminum, which was set at 6% for the last ten years, to 3% from January 1, 2007. The proposal of EU will

be a "primary step" to alleviate the burden on importers. The respite will be a compromise, leaving intact the import duty on alloyed version of aluminum.

Of about 2.3 MMT (Million Metric Tons) of unalloyed aluminum imported by the EU last year, nearly one Million Tons were subject to 6% duty. Most of the imports in that year came from Russia. Respite for Poland over import tax on aluminum could help in resolving a separate Russia-EU trade issue, say experts.

As per a Research Analyst's view at RNCOS, who has recently researched a report on "European Aluminum Market (2007)", "European importers of aluminum will probably delay shipments till the time tariff reduction comes in effect and that will likely create a short period of tightness in aluminum supply in this region."

For more information visit: http://www.rncos.com/Report/IM090.htm  
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