Displaying items by tag: Import

Pakistan/Iran: The All Pakistan Cement Manufacturers Association (APCMA) has condemned the illegal import of cement from Iran and tax evasions at the import stage by misdeclaration, which is seriously affecting Pakistan's cement industry. The APCMA has urged the government to stop the trade immediately.

An APCMA spokesman said that the quantity of cement being imported from Iran has been found understated on the Customs Goods Declaration form, resulting in a substantial loss to the national exchequer. This is done via the collusion of dealers with Customs departments officials and transporters. Not all of the necessary tax is being paid on Iranian cement imports.

"At present, the country's surplus cement production capacity is more than 20Mt/yr and it is coming under further pressure because of the illegal imports of cement. It is not only damaging the local industry, but also through misdeclaration it is giving a substantial loss to the national exchequer," said the APCMA spokesman. He urged the government to include cement in a negative list of import items so that the country's surplus production capacity could be used to the maximum. "This would help to increase economic growth in the country and will also curb malpractices at different levels."

Costa Rica: Costa Rica's national emergency commission (CNE) has prohibited Grupo JCB from using cement imported from China for the construction of a dam on the Nosara River in Nicoya. The works are being carried out by the CNE in order to contain water overflowing from the river.

The CNE has announced that the product does not have the certification of quality requested in the Technical Regulation for hydraulic cement. This document outlines rules to guarantee the durability of cement used in the country, as well as the safety of people who come into contact with the material during the construction process. CNE spokesperson Reinaldo Carballo said that this move does not signify the paralysis of the US$1.72m project, which is 72% complete.

The owner of Grupo JCB, Juan Carlos Bolanos, has expressed surprise at the decision and has assured that the cement does meet the requirements established by laboratory studies.

India: The Cement Manufacturers Association (CMA) is seeking a tax on cement imports to provide a level playing field to the industry.

In a memorandum to various Union Ministries on 10 April 2015, the CMA said that cement was allowed to be imported into India at zero import duty, whereas all the major raw materials required to make cement such as limestone, gypsum, pet coke and packing bags attract import duties.

"To provide a level playing field, the basic customs duty should be levied on imports of cement into India and import duties on goods required for the manufacture of cement be abolished and freely allowed without levy of duty," said the CMA. The CMA also said that there is a case for rationalisation of domestic taxes on the cement sector in order to make it competitive.

"The value-added tax (VAT) on steel is only 4% whereas it is 12.5 – 15% on cement and clinker in different states. Thus there is a need to slash the tax burden by 20 – 25% through rationalisation and lowering of the excise duty to 6 – 8% without the addition of any specific duty," said the CMA. It also demanded that cement be stipulated as 'declared goods' to put it on equal footing with goods like coal and steel and an element of royalty be included in the calculation of drawback rates.

India: The Confederation of Real Estate Developers' Associations of India (CREDAI) has said that it plans to import cement from abroad, particularly China, in order to overcome the rising prices faced by builders and the Telangana government's decision to impose extra costs on trucks coming from the neighbouring state of Andhra Pradesh.

With trucks owners deciding to suspend their operations in protest at the move, there have been reports of cement shortages. "The cost of premium cement in the retail market is set to increase steeply, as transportation costs will shoot up with the government's decision to impose road tax on trucks from Andhra Pradesh," said CREDAI Vijayawada chapter president C Sudhakar. "To avoid this, there are plans to import cement from China."

Sudhakar estimated that the cost of importing Chinese cement could be 20 – 21% lower than getting it from Andhra Pradesh, a clear benefit to CREDAI members and local homeowners.

Vietnam: Ha Tien 1 Cement Company is negotiating with Indonesian partners to import coal from Indonesia, according to the Saigon Securities Incorporated (SSI). Under the current laws, businesses must seek permission for the import of energy products.

Coal accounts for 40% of clinker and 32% of cement production costs. Ha Tien 1 is considering importing coal because the market price has fallen sharply with the drop in crude oil prices. Ha Tien 1 currently buys coal from Vinacomin at US$100/t. The coal price in Indonesia is US$52/t free on board (FOB).

If Ha Tien 1's proposal to import coal gets approval from the government, the cement manufacturer would cut production costs and be able to reduce sale prices and boost its sales. If Ha Tien 1 could import 25% of the total coal it needs for production, it would be able to reduce its production cost by 8%.

Bolivia: Itacamba Cemento intends to import 50,000t of cement in 2015 to guarantee supplies in Santa Cruz. Itacamba Cemento will also raise its production by 6% in 2015 to 3.6 million bags.

Cement demand in Bolivia is expected to increase by 8 - 10% in 2015 according to estimates by the local cement industry. However, due to insufficient local production, cement has to be imported. In 2014 the government used Insumos Bolivia to import about 600,000 bags of cement. A similar amount is planned for import in 2015.

Guillermo Schrupp, the president of the Construction Chamber in the Santa Cruz department of Bolivia, Cadecocruz, has said at least two or three more cement plants are needed in the medium to long term in order to meet rising demand until the Rositas hydroelectric dam is completed in 2018.

Angola: The Angolan government has banned the importation of cement as of 1 January 2015, saying that there is adequate local production to meet national demand.

"Due to the investments made by various companies, the installed cement production capacity in Angola is 8Mt/yr. Demand is around 6.5Mt/yr," said Minister Waldemar Alexandre Pires. He added that the ban was imposed after consultation with the country's Cement Sector Commission, coordinated by the Ministry of Construction and the Ministries of Trade, Industry and the Economy.

The Angola cement market has enjoyed four years of double-digit growth on the back of the country's economic recovery. This follows the end of a 30-year civil war in 2002. The short-term outlook is positive, with continued market growth and capacity building, encouraging more players to venture into the burgeoning market. The majority of domestic cement consumption is located in the more densely populated western provinces. So far the government claims to have spent over US$1bn on reconstruction since the end of the war.

A resumption of construction activities in and around the capital of Luanda, where the government has pushed ahead with a range of new construction projects including a number of much-needed housing schemes for the city's expanding population, has been the main drivers of the cement consumption in the southern African nation.

South Korea: According to local media, Korea's cement firms have received US$127m from the Japanese government for three years from 2011 to 2013 for bringing in Japanese coal that is thought to have been contaminated with radioactivity.

According to data submitted by the Environment Ministry to Lee In-young of the main opposition New Politics Alliance for Democracy, who is also a member of the National Assembly's environment labour committee, four domestic cement firms (Ssangyong Cement Industrial, Tongyang Cement and Energy, Lafarge Halla Cement and Hanil Cement) brought in 3.69Mt of coal from Japan from 2011, when the Fukushima nuclear accident occurred, until 2013. In return, they received a total of US$127m for waste disposal.

This is the first time that the amount of money Korea's cement firms received from importing Japanese coal has been revealed. Japanese coal imported to Korea stood at 1.11Mt, worth US$39.9m in 2011, 1.23Mt or US$45.5m in 2012 and 1.35Mt or US$42.2m in 2013. The amount has continued to increase over the past three years.

"The problem is that 20-73Bq/kg of radioactive cesium was detected in the Japanese coal," said Lee. "Though this level is lower than the safety threshold (370Bq), there is the possibility of cesium exposure in everyday life, given that coal is used in cement as well as other construction and industrial materials." If the level of cesium that is radioactive exceeds the safety threshold and permeates into body, it can cause osteomyelitis or thyroid cancer, among others.

India: Shree Cement is considering importing coal from Indonesia in 2015. The Indian cement producer is in talks with Indonesian mines, according to a report by India Coal Market Watch. The report said that Shree Cement had purchased around 1.5Mt of US steam coal in 2013 – 14. Part of this allocation was re-sold by the company to brick kiln-makers in Punjab, Haryana and Rajasthan. Shree Cement is believed to have secured its steam coal and pet coke requirements until December 2014.

Angola: Cement production in Angola has reached 8Mt/yr, which was slightly more than the amount consumed, making Angola self-sufficient in terms of cement.

The China International Fund Ltd (CIF) plant is the country's newest cement facility. Production from the 4Mt/yr capacity cement plant enabled Angola to cease cement imports. The plant has two 5000t/day production lines, 145MW of power production capacity and three wind turbines.