Displaying items by tag: Import

Iran: Shahryar Geravandi, the manager of Saman Cement at Kermanshah in western Iran, has warned that Iraq's high import tariffs on cement has put the Iranian cement industry in crisis. Geravandi said that Iranian cement plants now face overcapacity, according to the Tasnim News Agency. He added that finding new markets for the surplus cement would be hampered by high transport costs.

Nigeria: The Economic and Financial Crimes Commission (EFCC) has raided the Lagos office of the Bank of Industry (BOI) following an investigation. Officials of the development bank say that the raid was part of the investigation by the EFCC of the allegation of misapplied funds belonging to the Cement Technology Institute of Nigeria (CTIN), according to All Africa.

In a statement the BOI said that concerns regarding the new terms on how to manage a fund accrued from tariffs on imported cement between 2011 and 2015 had been addressed. The bank was appointed by the federal government to use the money to develop the country’s cement industry. However, following the creation of Cement Technology Institute of Nigeria (CTIN) the BOI was asked in 2013 to transfer the fund to CITN. This did not happen. On 17 June 2016 the fund had grown to US$47m in the BOI’s accounts.

Philippines: The Cement Manufacturers Association of the Philippines has warned that so-called ‘technical’ smuggling is on the rise. CEMAP president Ernesto Ordoñez claimed that the declared freight costs for nine out of 12 imported cement shipments that it inspected were undervalued at only US$3 – 10/t. These compared to the average freight costs of US$19/t for shipments from Vietnam or China. He added that the difference in the freight costs meant that the government could be losing at least US$175,000 in value added tax (VAT), according to the Philippines Daily Inquirer.

Based on the sample, Ordoñez estimates about 75% of the 161,000t of imported cement that entered the country in the first quarter of the 2016 were technically smuggled. CEMAP have called for inspection of other shipments that entered the country in last quarter of 2015 and in the first quarter of 2016. They added that unchecked smuggling might lead to violations such as cement misclassification and substandard cement that in turn might endanger public safety.

CEMAP data shows that imports of cement grew from 4000t in 2014 to 314,000t in 2015. Cement imports of 161,000t were recorded for the quarter of 2016.

Democratic Republic of Congo: Banza Ngungu, the CEO of Cimenterie de Lukala, has blamed the closure on the company’s integrated cement plant on imports from Angola. He attributed the increase in imports from the neighbouring country to currency fluctuation, according to Africanews. The Minister of Economy Modeste Bahati Lukwebo added that cement imports crossing the Angolan border were not paying the required import tariffs.

Ghana: Dangote Cement has appealed to the Ghanaian government to ban imports of cement from China. Dangote officials made the comments on a press tour of its own cement import terminal at Tema, according to Kaspa local radio. Chinese cement importers were accused of not paying correct tariffs and not holding adequate certification.

Dangote, a cement producer based in Nigeria, faced investigations by the Ghanaian Ministry of Trade and Industry in February 2016 due to allegations of predatory pricing reported by local media. As well as operating a 1Mt/yr cement import terminal the company is building a 1.5Mt/yr clinker grinding plant in Takoradi.

Iraq: Iraq intends to remove a ban on import of Iranian cement according to Abdolreza Sheikhan, the secretary of Iran's Cement Industry Employers Association. In comments reported by the Fars News Agency, Sheikhan said that Iranian and Iraqi officials had held several meetings on the issue.

He added that Iraq had banned cement imports due to security problems in the country and the falling oil price. Iraq’s cement demand is currently met by its own domestic production. Previously, Iraq took 60% of Iran’s exports of cement. However, in the last year Iraq increased its import tax on Iranian cement to US$13/t from US$4/t.

Zimbabwe: The Cement and Concrete Institute of Zimbabwe has presented a paper to the Ministry of Industry and Commerce suggesting government intervention in the cement industry including banning imported cement. The paper also calls for a protection tariff on imported cement of US$50/t, granting import licences to local producers, cancelling or reviewing all issued permits in circulation in the country and lowering duty on raw materials according to local press.

The country’s cement producers include Lafarge, PPC and Sino Cement. Together they have a cement production capacity of 1.85Mt/yr compared to an estimated demand of 1.17Mt/yr in 2016. Together these cement producers have invested nearly US$185m in cement plants upgrades within the last five years. However, a surplus of cement in the region means that South Africa, Mozambique, Zambia and Botswana export cement to Zimbabwe which is threatening the local producers’ investment.

Belgium: FEBELCEM, the federation of cement producers in Belgium, has reported that cement consumption rose by 4.6% year-on-year to 6.4Mt in 2015. It attributed the growth to favourable weather and growth in residential construction. It expressed concern that imports of cement also rose in 2015 by 18% to 1.51Mt from 1.28Mt. This increased the market share of imports to 23.6%.

Malawi: The government of Malawi has defended its decision to introduce licences for cement importers saying there is no ban on importing the building material. Ministry of Industry and Trade spokesperson, Wiskes Mkombezi said that the government was issuing the licences to protect consumers in a monopolised local industry and to prevent smuggling. He added that the licences were to regulate and bring ‘sanity’ to the industry according to All Africa.

Local cement producers have complained about the import licences. Directors with Cement Products Limited and Lafarge have claimed that imports of cement are threatening local jobs in the country.

Malawi: Malawi has relaxed its ban on importing cement, to prevent local consumers being exploited. The price of cement in the southern region where cement is produced locally is higher than the central region where cement is imported from Zambia. The Ministry of Trade and Industry has issued licenses to some importers to enhance competition on the market, according to All Africa.

"The ministry will always commit itself to fight smuggling and give strong support to all stakeholders such as Malawi Revenue Authority and the Malawi Police Service in this fight," said Ministry of Industry and Trade spokesperson, Wiskes Mkombezi. The ministry is encouraging importers to pay import duty and has asked the public to help combat smugglers. The country introduced licenses for cement importers in early 2000 to regulate the local market and promote the local industry.