Displaying items by tag: Duty

South Korea/Egypt: The South Korean government’s 72% ‘anti-dumping duty’ on imports of white cement from Egypt entered force on 17 November 2023. Yonhap English News has reported that the measure will remain in force for four months, until 17 March 2023.

Egypt exported 9240t of white cement to South Korea in 2022, up by a factor of nine from 2021 levels.

Moldova: The Ministry of Economic Development and Digitalisation has announced that Ukraine will cancel an existing anti-dumping duty on imports of Moldovan cement until 31 December 2023. Ukraine announced the move following constructive discussions held during a meeting of the co-chairs of the Moldovan-Ukrainian intergovernmental commission on trade and economic cooperation held in Odesa, according to Interfax-Ukraine.

Moldovan Minister of Economic Development and Digitalisation Vadim Humene insisted that Ukraine cancel the anti-dumping duty so that Moldova did not have to ‘initiate trade defence processes’ regarding products that Moldova imports from Ukraine.

In addition to the temporary removal of the anti-dumping duty, the two countries expressed their readiness to help remove barriers to trade and simplify border controls to optimise the flow of goods, review environmental duties and ensure transparent, uniform application of legislation by both countries.

South Korea/Egypt: The South Korean government plans to implement a 72% import duty on white cement from Egypt. Yonhap News has reported that the Korea Trade Commission (KTC) recommended the duty as an anti-dumping measure, following its investigation into the impacts of Egyptian imports on the South Korean white cement industry. This consists of Union Corporation’s 200,000t/yr Chongju white cement plant in North Chungcheong.

South Korea consumed 100,000t of white cement in 2022. Egyptian white cement commanded a 10% (10,000t) market share. The domestic cement industry complained to the KTC against Royal El Minya Cement and Albatros International Cement Trading in March 2023. An additional probe will now follow to assess the correct rate for the duty.

Kenya: Parliament's Finance and National Planning Committee has rejected a petition from the Kenya Association of Manufacturers (KAM) for the removal of the 10% customs duty on imports of clinker. Business Daily News has reported that KAM member Rai Cement said that the duty will force cement plants to shut due to high costs. The committee, however, concluded that the levy aims to encourage local manufacturing, promote exports and create jobs for Kenyans.

National Cement, which operates the 1.95Mt/yr Kajiado cement plant in Merrueshi-Mbirikani, opposed the KAM line by submitting its own petition for an increase in the clinker import duty to 25%.

Cement producers in Bangladesh received a surprise at the start of June 2023 when the government budget proposed increasing the duty on imported clinker. The Bangladesh Cement Manufacturers Association (BCMA) reacted this week by calling for the duty on clinker to be reduced, while also calling for the same for a non-adjustable advance income tax (AIT) applied to associated imports and sales.

During a press conference, reported upon by the Financial Express newspaper and other media, BCMA president Alamgir Kabir said that the customs duty on key raw materials for the sector had previously been around 5% of the import value. However, he argued that the new suggested increased tariff was “disproportionate” because it placed the burden at 12 - 13%. He urged the government to treat the cement sector as a "priority sector" given that it was facing higher prices generally due to the aftermath of the Covid-19 pandemic, the energy shocks from the Russian invasion of Ukraine and negative currency exchange effects.

The BCMA’s latest lobbying call may sound familiar because it follows a similar battle against import charges from late 2022. A supplementary duty was introduced in November 2022 when the National Board of Revenue (NBR) changed the way limestone was coded in response to a significant increase in imports from 2020. At the time, the price of limestone imports reportedly nearly doubled. The BCMA may have won this battle because in March 2023 the NBR withdrew its supplementary duty. It did require that importers submit to further scrutiny including an updated Import Registration Certificate and various tax related requirements.

The timing of the NBR’s decision to relax the limestone duty is telling given that the previous month or so six of the country’s seven publicly listed cement producers reported either falling profits or losses for the second half of 2022 or the year as a whole. Only LafargeHolcim Bangladesh bucked the trend with an increase year-on-year in its annual profit after tax in 2022, although it attributed this to 95% volume growth in its aggregates business.

As discussed previously a characteristic of the cement sector in Bangladesh is that the country has no domestic limestone reserves. It all has to be imported. Arusha Ahmed Khan, Shun Shing Group presented a summary of the national industry at the Global Slag Conference that took place in early June 2023 in Düsseldorf. The country has two integrated cement plants and 36 grinding mills operated by 31 companies with a total capacity of 84Mt/yr. At present around 14Mt/yr of new cement grinding production capacity is planned by UK Bangla Cement, MI Cement, Confidence Cement and Dubai Bangla with commissioning dates expected from mid-2023 to mid-2025. Khan revealed that the government switched from British to European standards in the early 2000s leading to a high level (95%) of blended cements on the market. Use of slag cements has grown as more producers commission vertical roller mills and more uptake of slag and other blended cements using secondary cementitious materials (SCM) is expected in the future.

A key vulnerability for a grinding-heavy cement sector, like the one in Bangladesh, is any burden on imports such as logistic costs, currency exchange effects and government tariffs. Sure enough each of these examples has been reported locally. The government says that its proposed higher import tariff on clinker is the first such change in a decade. Cement producers have reacted, predictably, in a negative manner. Whether the authorities go ahead with the planned increase and how well the cement sector could absorb it remains to be seen. There may never be a good time for a tax rise but the BCMA has been able to present the current period as being especially bad.

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Bangladesh: The Bangladesh Cement Manufacturers Association (BCMA) has called for a 60% cut to duties on clinker imports, to US$1.84/t from US$4.61/t. The Financial Express newspaper has reported that BCMA members are struggling with high shipping costs and supply issues due to Russia’s war in Ukraine.

The Bangladesh government published plans to raise the duty on imports of clinker by 40% to US$6.46/t in its 2023 budget on 13 June 2023.

Mexico: The government is expected to 'implement import facilities' to support the import of more cement into Mexico. Local press has reported that the measure is a response to local cement shortages in 'several regions,' above all in Southeast Mexico. The government also expects imports to lower domestic cement prices.

Mexico has a domestic cement production capacity of 42Mt/yr. This fell short of national consumption in 2022.

Uzbekistan: The government has ordered a partial transition of industries, including cement, to coal fuel from natural gas. The Turan Information Agency has reported that the ordinance, entitled Accelerating the Introduction of Renewable Energy Sources and Energy-Saving Technologies, will create an additional coal demand of 1.63Mt/yr and reduce national gas consumption by 926Mm²/yr. From 1 April 2023, the government will halve tariffs on coal imports, while the construction of new gas pipes to industrial facilities will be banned from 1 May 2023.

Australia: The government plans to reform its CO₂ emissions Safeguard Mechanism in line with its stated goal of net zero CO₂ emissions by 2050. Under the latest proposals, 215 industrial plants, including Australia's cement plants, will have to reduce their CO₂ emissions by 4.9% year-on-year every year until 2030. The Australian newspaper has reported that the government is currently receiving submissions on the proposed reform as part of its consultation process, which will end on 24 February 2023.

The Business Council of Australia and the Australian Industry Group have encouraged the government to introduce an adjustment mechanism for imports, based on the EU's Carbon Border Adjustment Mechanism (CBAM), in conjunction with any tightening of the Safeguard Mechanism.

India: Operators of limestone mines in Karnataka's Chamarajanagar District have suspended quarry operations indefinitely in protest against the Karnataka state government's increased licensing royalties and rules requiring drone surveillance. The companies also demand that the state government cease to implement new policies affecting them. The Times of India newspaper has reported that the strike has impacted a total of 10,000 jobs, both at quarries and downstream in the building materials and construction sectors.