Displaying items by tag: Tax

Philippines: Ramon Lopez, the secretary of the Department of Trade and Industry (DTI), says that a suggested retail price (SRP) for cement is not a priority following the introduction of tariffs in imports. He added that prices had barely changed since the safeguard duty started in February 2019, according to the Manila Times newspaper. The Tariff Commission is currently considering whether to add additional tariffs to cement imports. A public hearing is set on for early May 2019 where it may extend the import duties.

Trinidad & Tobago: Trinidad Cement has asked the Caribbean Court of Justice (CCJ) to make its competitor Rock Hard Cement pay more than a 5% tariff on imports. It follows a ruling by the council of trade ministers in the Caribbean Community (CARICOM) in March 2019 that agreed to a classification of Rock Hard Cement’s products in Trinidad leading to duties of up to 5%, according to the Nation newspaper. The case has been referred to the CCJ for final arbitration in June 2019.

Pakistan: The All Pakistan Cement Manufacturers Association (APCMA) has reported that cement exports during first eight months of the current Pakistani fiscal year, from 1 July 2018, saw growth of 52.3% year-on-year compared to the same period of the prior fiscal year. Exports were 4.65Mt compared to 3.05Mt.

In February 2019 exports were up by 69.1% year-on-year at 0.51Mt. The southern part of the country, particularly the Sindh region, fared considerably better than the national picture, as cement exports from the region increased by 185% to 0.35Mt in February 2019. Local consumption in the region was also higher, albeit less dramatically, with sales of 0.67Mt as compared to 0.61Mt a year earlier. However, plants in the north continued to suffer, with exports falling by 16% to 1.86Mt over the eight-month period from 2.21Mt a year earlier. In February 2019 exports from the north declined by 8.7% to 0.17Mt

Among other factors, the export of cement to India has been suspended due to a 200% increase in the import duty, as the Indian government had announced to de-list Pakistan from the status of ‘Most-Favoured Nation.’ The APCMA also said that rain in almost all parts of Pakistan had also affected construction activities.

Trinidad & Tobago: The council of trade ministers in the Caribbean Community (CARICOM) has agreed to the classification of Rock Hard Cement’s products in Trinidad. Rock Hard Cement has faced legal action from its competitor Arawak Cement about the designation of its products and the tariffs they incur, according to the Barbados Today newspaper. The matter will be referred to the Caribbean Court of Justice (CCJ) in June 2019 for final arbitration.

Trinidad Cement, the owner of Arawak Cement, took legal action against Rock Hard Cement in the CCJ alleging that the cement importer was misclassifying its products as ‘other hydraulic cement’ instead of ‘Portland cement-building cement grey’ leading to a lower import duty. However, the World Customs Organisation and CARICOM’s Council for Trade and Economic Development (COTED) have both ruled in favour of Rock Hard Cement. As such it only incurs a tariff of up to 5%. Rock Hard Cement said that it expects the CCJ to uphold COTED’s ruling in June 2019.

Armenia: The Centre for Initiatives to Economic Growth has said that government plans to implement tariffs on imported cement will negatively affect the Armenian construction industry. The research body has sent a letter to the prime minister raising its concerns, according to the ARMINFO News Agency. Local cement producers are reportedly under pressure from Iranian imports. In February 2019 the government said it was planning to impose of rate of around US$45/t on imported cement to protect local producers.

Data from the Statistical Committee of the Republic of Armenia shows that cement production rose by 60% year-on-year to 0.40Mt in the first nine months of 2018 compared to 0.25Mt in the same period in 2017. However, production in September 2018 fell year-on-year by 23% to 44,000t.

South Africa: The Concrete Institute says that the International Trade Administration Commission (ITAC) should impose a temporary ban on cement imports to protect the local industry. The institute is preparing an application to the commission, according to the Business Daily newspaper. Bryan Perrie, its managing director, said that imports from Pakistan dropped in 2016 after tariffs were introduced. However, this has been replaced by imports from China and Vietnam. He added that prices have dropped ‘drastically,’ especially in coastal areas, that this is starting to effect jobs and cement producers are delaying expansion plans. The Concrete Institute represents PPC, AfriSam, Lafarge Africa, Sephaku and Natal Portland Cement.

India/Pakistan: Cement importers in India have asked exporters in Pakistan to stop their consignments following a 200% rise in tariffs for cement and other products in India. The duties have been imposed in response to an attack on police in Pulwama in Jammu and Kashmir in mid-February 2019, according to the Dawn newspaper. A source quoted by the newspaper said that cement shipments are being recalled on route to destinations in India.

Around 75% of Pakistan's cement exports to India are conducted at the Wagah land border, while the rest are handled at sea. Exports to India between July - January of the current financial year were 0.65Mt and exports in 2017 -2018 were 1.2Mt.

Philippines: SCG Philippines Country Director Anuvat Chalermchai says he is unconcerned about the country’s new tariff on imported cement because the company’s imports are ‘very small.’ The subsidiary of the Thai conglomerate imports 0.2 – 0.3Mt/yr of cement, according to Business World. It operates seven companies in the Philippines: United Pulp and Paper Company, SCG Trading Philippines, Green Siam Resources, Green Alternative Technology Specialist, SCG Marketing Philippines and Mariwasa Siam Ceramics.

Kenya: A government audit has recommended that the Mining Minister suspend the operating licences for Athi River Mining and the East African Portland Cement (EAPCC). The report to the Public Accounts Committee was in response to the companies not paying taxes, according to the Business Daily newspaper. Both cement producers have faced financial difficulties recently.

Philippines: The Philippines Tariff Commission has started a formal investigation into the provisional safeguard tariff placed by the Department of Trade and Industry (DTI). Consumer group Laban Konsyumer asked the commission to place a temporary restraining order on the tax but the body said it lacked the power to do so, according to the Philippine Star newspaper. The commission has three months to reach its verdict. The DTI placed tariffs on cement imports in January 2019 to protect local producers.