Displaying items by tag: Tax

Philippines: The Tariff Commission has delayed a public hearing on the formal investigation on the imposition of safeguard measure on cement imports. The meeting was scheduled to take place in early May 2019, according to the Philippine Star newspaper. The commission said it was postponed in order to give it time to visit plants and check its data.

The investigation started in February 2019 to check whether a provisional safeguard duty imposed by the Department of Trade and Industry (DTI) should remain in place. The DTI applied a US$4/t tariff in the form of a cash bond on imported cement in mid-January 2019 for a period of 200 days in response to a surge in imports.

Bangladesh: The Bangladesh Cement Manufacturers Association (BCMA) has asked for import tariffs on clinker to be reduced. In a letter to the National Board of Revenue (NBR) it requested that the duty be cut to either US$2.40/t or a fixed rate of 5%, according to the Dhaka Tribune newspaper. Importers pay around US$6.00/t at present. The BCMA argues that the cement industry is paying more than other industries for its imports.

The association has also called for value added tax (VAT) on raw materials to be cut to 5% from 15%, reducing advance income tax to 2.5% from 5% and exempting regulatory duties for fly ash and import duties for cement bulk carriers.

Armenia: Tigran Khachatryan, the Minister of Economic Development and Investments, says that the government is considering adding clinker to a list of goods subject to import duties. A tariff of around Euro40/t could be introduced for a year until April 2020, according to the ARMINFO News Agency. This would be similar to proposed duties on imported cement.

The measures are intended to protect local cement production. Khachatryan noted that imports from Iran could be up to a third of the price of locally manufactured cement due to cheaper energy supplies and state subsidies.

Trinidad & Tobago: The Caribbean Court of Justice (CCJ) has ruled that Rock Hard Cement does not have to pay more than a 5% tariff on imported cement. The regional court was ruling on the duty liable for ‘other hydraulic cement,’ according to the Jamaica Gleaner newspaper. Rock Hard Cement’s competitor Trinidad Cement and its subsidiaries had argued that such imports be liable to a 60% import rate that the importer had previously paid due to Barbados’ exemption from the region’s Common External Tariff (CET) in 2001 and its subsequent re-entry in 2015.

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.