25% Additional Tax on Steel

According to the "Regulation on Measures for Protection in Imports" published in the Official Gazette on September 20, 2018, an additional financial obligation of 25% will be applied as a temporary safeguard measure for Seamless Steel Drawn Pipes that do not comply with internationally recognized standards. This measure aims to protect domestic steel producers. It is understood that this application will affect all Seamless Steel Drawn Pipes, including those not produced domestically. This will result in a direct increase in costs of at least 25% for industrial firms like ours, which rely on these pipes as raw materials and have no other option but to import them from abroad.

In addition to this kind of practice; The fact that pipes without domestic production will incur a direct cost increase of +25% for everyone, The competitive advantage of all sectors that export abroad and also sell to the domestic market, such as machinery, shipyards, automotive, boilers, etc., producing equipment made from seamless pipes will be eliminated, The industries already struggling in construction, manufacturing, and automotive sectors, as well as auxiliary industries like hydraulic cylinder, heat exchanger, boiler tube manufacturers, will face even more difficulties, and projects may be negatively affected, Companies in industries such as industrial, automotive, hydraulic, mechanical installations, cylinder manufacturers, agricultural tools and equipment, structural steel, energy, mining, natural gas, geothermal, and oil drilling, which already operate with minimal profits, will be put in very difficult situations, The price increase could also lead to an unnecessary rise in the perception of domestically produced welded pipe prices, Additionally, the halt in production of manufacturing machines and the negative effects on employment and production that this decision will have, The fact that products that could be produced in our country with lower costs and our labor will be brought in from abroad at a much higher cost, leading to more foreign currency leaving the country, Moreover, the fact that firms will have to bring in more foreign currency by importing seamless products at a higher cost individually, and this will lead to the results, as large importers like us will reduce their product ranges by not stocking every product or special products that can be purchased at special prices, we believe will have consequences.

As a company operating in Bursa specializing in the sale of Seamless Steel Pipes, we wish to express our desire for domestically unproduced Seamless Steel Pipes to be excluded from the application of an additional financial obligation of 25% for safeguarding purposes. We believe that such exclusion would prevent a significant increase in our costs as a domestic industry.

H.Ömer KAYRA - Company Manager