According to UAE cement and steel producers, the right time has come for the reintroduction of customs duty on imports in order to protect the interests of local manufacturers.
Mustafa Gorgunel, general manager of Union Cement Norcem, said, "I would say it should be increased from five percent to 10 percent. It has become absolutely necessary because there is sufficient availability of locally produced cement in the market. When they removed the customs duty last year, there was a shortage of clinker due to the high cost of imported clinker. But now the situation has totally changed."
Ahmed Al Amash, General Manager of Gulf Cement said, "It is for the government to decide. However, in my opinion there is an immediate need for customs duty to be imposed above the previous five percent. Our sales witnessed a drop and are still falling. Due to several ongoing projects, we are continuing production. But once these projects are complete, we will face a much more difficult situation."
Ajay Aggarwal, CEO of RAK Steel, said, "The government decision to reintroduce the tariff will discourage speculators. It is not a protectionist measure. It existed and was removed because any speculation or volatility in prices is not good for the market. Hence, re-imposing the duty will be good for the industry."
In March 2008, the UAE government removed the five per cent customs duty in order to curb rising costs and increasing supply.