Displaying items by tag: Import

Nigeria: Oyebamiji Dauda, the chairman of the Lagos State Bricklayers’ Association, has urged the government to cut the price of cement. He wants it to make cement manufacturing more competitive by allowing more producers to operate in the market, according to the News Agency of Nigeria. He added that the ‘high’ cost of cement was negatively affecting building construction. Dauda’s ideas to ease the price of cement include government subsidy, tax breaks for local producers of building materials and further penalties for imported products.

Belarus: The Council of Ministers has required companies to obtain a special license for importing Ordinary Portland Cement (OPC) from outside the Eurasian Economic Union (EEU). The requirement will take effect later this month and will be in effect for six months, according to the Belapan news agency. The new regulations have been introduced to support the local sector.

In January to April 2019, Belarus imported 0.13Mt of cement including 65,000t from other EEU countries, according to the National Statistical Committee. In the same period, Belarus’ companies made 1.25Mt of cement, an increase of nearly 12% year-on-year, and exported 0.44Mt.

Ghana: The Cement Manufacturers Association of Ghana (CMAG) is lobbying the government against a recent fumigation levy of US$0.50/t on imported clinker by the Ministry of Health. At a recent meeting the association discussed this tax and others negatively affected the cement sector, according to the Business and Financial Times newspaper. It is also unhappy about more longstanding charges, including a VAT restructuring levy of 5%, and a 2% special tax as well as a new 11% electricity tariff and a proposed increase in the cost of a certification licence from the Ghana Standards Authority and impending. CMAG is also complaining to the Customs Division of the Ghana Revenue Authority about imports.

Kenya: Data from the Kenya Bureau of Statistics shows that cement production fell by 6% year-on-year to 1.46Mt in the first quarter of 2019 from 1.55Mt in the same period in 2018. Cement consumption dropped by 3% to 1.46Mt from 1.50Mt. Cement consumption previously grew by 2.8% year-on-year to 5.9Mt in 2018 from 5.8Mt in 2017. However, production fell by 2.6% to 6.07Mt from 6.23Mt. Imports increased by around 50% to 23,000t but exports decreased by 63% to 0.14Mt from 0.39Mt, mainly due to a major drop in deliveries to Uganda and Tanzania.

Philippines: The Philippine Cement Importers Association (PCIA) has refuted the claims of local cement manufacturers that an increase in cement imports has caused ‘serious injury’ to their operations. In a position paper submitted to the Tariff Commission on the imposition of safeguard measures on imported cement, the PCIA said that some local producers were reporting continued profits despite the level of imports, according to the Manila Bulletin newspaper. It also denied accusations that cement imports were absorbing 17.2% of local production and 14.2% of total market demand.

"We have a domestic cement industry that is robust and resilient amid the import surge, and already competitive against imports,'' said the PCIA. "The 2013 to 2017 results of operations of the domestic cement industry showed its ability to compete with cement imports. Despite the surge of imports during the period of investigation (2013 - 2017), the domestic industry continued to exhibit improving revenues and continuing profitability." It finished by saying that the Philippine cement industry was globally competitive and did not require any structural adjustment.

Eurasian Economic Union: The Eurasian Economic Union (EEU) produced 12Mt of cement in the first quarter of 2019. Armenia produced 68,000t and imported 47,200t. Belarus produced 0.84Mt, imported 79,500t and exported 0.26Mt. Kyrgyzstan produced 0.35Mt, imported 38,600t and exported 0.15Mt. Kazakhstan produced 1.47Mt, imported 0.11Mt and exported 0.33Mt. Russia produced 9.3Mt, imported 0.18Mt and exported 0.17Mt. Usually production in the first quarter represents 16 – 19% of annual production. Consumption of cement in the EEU region is expected to grow by 2.5% year-on-year in 2019.

Bangladesh: The Chattogram Customs Authority has seized 30 containers of cement imported under false declaration by Pran Dairy at Chattogram Port. Sources quoted by the Daily Sun newspaper said that the company has attempted to avoid paying the correct import tariffs by falsely declaring the consignment as high-density polyethylene (HDPE) for the UAE. However, when custom officials examined the shipment they found Saudi Arabian-branded cement instead.

A total of 10,200 sacks of 50kg bags of cement were found. The duty payable on HDPE is 32% compared to 91% for cement. The importer was attempting to avoid paying import tariffs of over US$350,000.

Trinidad & Tobago: The Caribbean Court of Justice (CCJ) is continuing to hear arguments about whether Rock Hard Cement should be exempt from higher taxes applicable to third party goods. Both the Caribbean Community (CARICOM) Council for Trade and Economic Development (COTED) and the World Customs Organisation (WCO) previously ruled that Rock Hard Cement imports from Turkey and Portugal were correctly classified as ‘other hydraulic cement,’ according to Barbados Today. However, lawyers on behalf of Trinidad and Tobago and Trinidad Cement have dismissed this classification of the imports, insisting that the classification of the World Customs Organization (WCO) and COTED were ‘unsafe, unreliable and incorrect.’ As such the imports should be classified as ‘building cement grey’ and liable to a tariff of 15% instead of 5%. The case continues.

Guyana: Concrete manufacturer KSM is taking legal action against the Guyana Revenue Authority (GRA) for over valuing the cost of cement imports. It alleges that the GRA charged it US$16.6m too much for five shipments between January and March 2019, according to the Stabroek News newspaper.

It grew its imports from 2015 to 2018 and it imported 24,480t of cement from Domicem in the Dominican Republic in 2018. However, KSM says that the GRA increased the declared value of cement by over 40% in the second half of 2018 without offering any ‘reasonable or justifiable grounds’ for so doing. KSM says it imported its shipments in 2019 at the lower rate and this was approved by customs. The GRA then demanded the shortfall from KSM in May 2019.

Philippines: The Cement Manufacturers Association of the Philippines (CEMAP) says it is confident that the Tariff Commission will increase the duty on imported cement on a permanent basis. In a statement Cirilo M Pestaño II, CEMAP’s executive director, noted that the commission had observed a rise in import volumes since 2016, according to the Manila Bulletin newspaper. He said that the association was confident that the commission would issue a, “ruling consistent with the national interest.” The association added that imports might be good for consumers in the short-term but they were bad for everyone beyond this due to lost economic earnings and reduced industrial production capacity.