News

Jul 15, 2023

Cement makers call for cutting assessment value at import stage

The Bangladesh Cement Manufacturers Association (BCMA) has urged the Chattogram Custom House to cut the assessment value of three raw materials as their prices have fallen in international markets.

The Bangladesh Cement Manufacturers Association (BCMA) has urged the Chattogram Custom House to cut the assessment value of three raw materials as their prices have fallen in international markets.

Cement producers say the production cost has increased as the assessment value of cement clinker, granulated slag and gypsum is higher than their prices in the international market.

They demanded that the assessment value of cement clinker be reduced from $60 to $50 per tonne, granulated slag from $30 to $26 and gypsum from $35 to $30, the BCMA said in a letter to the Chattogram Custom House recently.

The country's cement industry entirely depends on imports for raw materials as producers buy clinker, granulated slag, limestone flux, gypsum and fly ash from Thailand, Vietnam and China with a view to making finished products.

According to the National Board of Revenue (NBR), 24.15 million tonnes of cement raw materials worth Tk 13,878 crore were imported in the last fiscal year of 2022-23. About 22.47 million tonnes of raw materials worth Tk 10,760 crore were purchased from the global markets in 2021-22.

According to the National Board of Revenue (NBR), 24.15 million tonnes of cement raw materials worth Tk 13,878 crore were imported in the last fiscal year of 2022-23. About 22.47 million tonnes of raw materials worth Tk 10,760 crore were purchased from the global markets in 2021-22.

"We have to pay more taxes because the customs value of these products is higher than the import prices," said Md Alamgir Kabir, president of the BCMA, in the letter.

He said the country's ongoing US dollar crisis, the complexity in opening letters of credit and the higher dollar rate have put producers in a tight spot.

"Therefore, we have requested the National Board of Revenue and the Custom House to take a decision to this effect as soon as possible."

Mohammad Fyzur Rahman, commissioner of the Chattogram Customs House, told The Daily Star that after receiving the letter, they have collected data from international markets and found that the prices of the raw materials have come down.

"The matter is being seriously scrutinised by our assessment committee. A proposal in this regard will be sent to the NBR very soon."

According to Rahman, the custom house determines the assessment value of some products to prevent revenue evasion and ensure equal opportunities for all traders.

"We try to ensure that it is not more than the actual cost."

The assessment value is an average import price for the last 90 days.

Cement manufacturers also said that they are facing five to seven days of additional delays to have limestone released from ports. The extra time is needed since chemical reports have to be collected.

They urged the commissioner to quickly release the goods after securing an undertaking from importers.

"In the undertaking, importers will pledge that they will pay duty and penalties if any mis-declaration is found."

In this regard, Rahman said many traders brought in stone in the name of limestone. So, chemical tests have been made mandatory before releasing limestone to prevent revenue evasion.

"However, we will consider their proposal after analysing the risk about revenue evasion."

In Bangladesh, there are 37 active cement factories. They have collectively invested around Tk 35,000 crore and generated direct jobs for around 60,000 people.

Their combined annual production capacity has reached 65 million tonnes against a domestic demand of 35 million tonnes. The sector's annual sales are worth more than Tk 30,000 crore.