“Red Line” Trouble in the Chemical Industry

In the Chemical Industry “Red Line” Boredom. Despite the analysis devices they donated to the customs, the chemical industry continues to fall on the red line. The companies whose products fell on the red line said, "We bought these devices for customs by explaining their features to the Undersecretariat, they do not use them."

The phenomenon of 'products falling on the red line', which many industrialists have complained about recently, has reached a different dimension in the chemical industry. Chemists donated an analysis device to the customs of Istanbul, Izmir and Mersin so that imported products can be analyzed easily and quickly. Despite this, the businessmen, who saw that the products were sent to the laboratories for analysis by falling on the red line, learned that the devices they had previously gifted were not used. When a ware that falls on the red line is added to the warehouse and mortar costs, an additional cost of 1000 dollars emerges.

Waste of time and additional cost

Pointing out that there is a very short time left for Turkey to reach its export target for 2023, Istanbul Chemicals and Chemical Products Exporters Association Chairman Murat Akyüz stated that one of the biggest supports to be given to the sector is the ending of customs clearance delays. Stating that they gave a laboratory device to the customs about 2 years ago in order to speed up the work at the customs, Akyüz said, “After the requests from the companies, we took the offer to the Undersecretariat of Customs and explained the features of the device. We bought these devices and gave them to the customs of Istanbul, Izmir and Mersin, but they are not used.” Plastic Industrialists Federation (PLASFED) Chairman Selçuk Aksoy also stated that they started to receive many complaints about falling on the red line. Stating that they gave the devices as a gift in order to speed up the customs, Aksoy said, "Now we cannot distinguish the products with this device, so they do not use the device and drop the products on the red line, labThey are sent to them for analysis. Despite this, the device we gifted can distinguish these products. We say, 'I wonder if the knob of the scale has escaped in the applications made to cut down on imports'” he said.

The company that imported the product Aksoy mentioned is Penox Recycling Foreign Trade. The company imports low-density polyethylene from Saudi Arabia, which is not produced in Turkey. İbrahim Dinç, owner of Penox Recycling, said that when they imported this product in 2013, they understood that it would be dropped on the red line:

“At that time, there was a tax difference between low-density polyethylene and high-density polyethylene. The tax, which was taken as 3 percent for low density, was 6.5 percent for high density. Now they have brought the tax to 6.5 for both of these products. Even the need for separation is wrong. Moreover, the device we gifted can separate these products.”

Explaining that an additional cost of $1000 is incurred when a product falls on the red line, Dinç said that they fell on the red line again 1 weeks ago, after a 2-year hiatus. Expressing that the product was kept for 17 days, Dinç continued as follows:

“While our devices can distinguish this item, there is no reason to drop this product on the red line when the tax brackets are the same. Since there was no one to analyze this product at the university in Mersin, they sent it to Istanbul. We were able to withdraw the product after 17 days.” Explaining that their losses were approximately 15 thousand dollars during this period, Dinç stated that they procure this product from the domestic market for 1700 thousand 2 dollars instead of 100 dollars in order to fulfill the orders. Noting that they paid a difference of 350 dollars per ton for the product, Dinç added that they were canceled due to delays during this period.

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Source : World

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