Fiji allows cement imports at zero-rated duty

The Fijian government has announced that cement can now be imported from overseas at zero-rated duty, according to local press reports.

The move comes after the country’s main cement manufacturer Pacific Cement was forced to halt operations at its 0.215Mt grinding plant last month due to a major equipment breakdown, leading to a shortage of supply on the island.

The Minister for Economy and Acting Prime Minister, Aiyaz Sayed-Khaiyum, has since stated that imports will be permitted as long as they meet the right standards.

Mr Sayed-Khaiyum told local daily Fiji Sun that the government is more concerned about government projects such as the rebuilding schools and meeting the huge demand of the private sector as they venture into rebuilding public buildings.

He said even though there is a duty reduction on cement imports from overseas, it does not mean that they will be able to match the local retail price which is controlled by the Commerce Commission.

Operations are not expected to resume at Pacific Cement until July-August, but the company does have about 24,000t of clinker stock. The only other domestic producer is Tengy Cement Fiji Ltd, which operates a 0.3Mta grinding unit. Therefore, Mr Sayed-Khaiyum said the two cement companies have reached an agreement whereby Pacific Cement will its clinker to Tengy for US$147/t so the latter can increase cement production to help meet the supply shortfall.