APCMA asks to impose 20% regulatory duty on Iranian cement

APCMA asks to impose 20% regulatory duty on Iranian cement
18 December 2015

All Pakistan Cement Manufacturers Association (APCMA) has requested the Ministry of Finance to impose regulatory duty on cement imports from Iran to save the local industry. In a letter to the Finance Secretary, Waqar Masood Khan, APCMA Chairman, Mohammad Ali Tabba, said that cement imports from Iran have touched “alarming” levels.

“Over the last year, larger and larger quantities are arriving daily and now the quantities are at an alarmingly high level, reaching about 2,000tpd," stated the letter.

The APCMA chairman added that despite a statutory custom duty of 20 per cent, Iranian cement is selling at 40 per cent below the retail price of domestically produced cement in the Baluchistan market due to the actions of custom officials.

“As a result, the local market in the areas adjacent to the Iranian border as well as the coastal area of Baluchistan are flooded with Iranian cement,” he added.

Consequently, he added, domestically produced cement is fast losing market share as it is unable to compete with this Iranian cement because of the evasion of duties and taxes. Secondly they are also not compliant with Pakistani quality standards (PSQCA). The authority must not allow import of cement from Iran unless it is fully complaint with duties and taxes and certification from PSQCA.

He added that this surge in Iranian cement imports is a big threat and would seriously affect the domestic industry, while it would also jeopardise the investment in the industry. “In order to protect the industry from the onslaught of Iranian cement import, it is prayed that a Regulatory Duty of 20 per cent may be imposed on cement imports as per H.S. Code 2523:2900,” argued Mr Tabba.

Published under Cement News