Government of Azerbaijan Extends Customs Tariffs on Cement and Clinker

The Cabinet of Ministers of the Republic of Azerbaijan reports it is going to keep customs tariffs on imports of building materials including cement clinker and several types of cement until December 31, 2021. The decree on that matter was published on December 4.

The tariffs are as follows:

• 0.07 dollars per 1 kg — cement clinker, cement, alumina and other hydraulic cements, gypsum and anhydrite;
• 0.4 dollars per 1 m3 — gypsum and products from it;
• 0.04 dollars per 1 kg — bricks and other products from quartz flour;
• 0.03 dollars per 1 kg — bentonite.

“Tariffs should have expired on December 15, 2019, and the Cabinet of Ministers decided to extend their validity for another two years,” the Azerbaijani government said.

Tariffs were introduced in 2017. This year, on the backdrop of an increase in the volume of commissioned residential buildings, the government decided not to increase the rates. In January-September 2019, 4.15 million m2 of high-rise buildings were successfully commissioned. According to the data of the national statistics committee provided to Cement and Its Applications these numbers are 2.8 times higher than a year ago.

According to the Statistical Committee, 25.3 thousand tons of cement worth 6.2 million US dollars were imported into the republic in nine months of 2019. Export amounted to 3.6 thousand tons, $285,000 worth. Compared to last year, imports decreased by 24.7%, and exports decreased by 94.1%.

Statistics indicate that cement enterprises of Azerbaijan produced 2.5 million tons of products in January-September, which is 1.2% less than a year ago.

Three large plants operate in the republic with an aggregate design capacity of 3.7 million tpa: Gyzildash Cement (Norm Cement), Holcim Azerbaijan and Gazakh cement.

Cement production, export and import figures H1 2019 according to the statistical office of Azerbaijan: