Customs officials deny trader claims

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DUTY FREE: The Abu Dhabi customs department says some traders are demanding exemption for shipments received months ago.(Getty Images)

The Abu Dhabi customs department has denied allegations by steel and cement traders that it is violating an order issued last month to exempt them from 5% customs duties, it was reported on Wednesday.

Director general Saeed Al Muhairi said the department had complied with the decision since it was issued on March 16, and claimed some traders were demanding exemption for shipments entering the emirate up to four months ago, according to a report by Emirates Business 24/7.

“Unfortunately, traders are not satisfied with the big profits they made when prices were high and want more profits at the expense of consumers and the future of the emirate. Even now, some are making big efforts to starve the market of cement and steel in an effort to raise their prices,” said Al Muhairi.

Duties on imported cement and steel were initially lifted in Dubai in an effort to stabilise the price of raw materials and rein in inflation in the construction industry. The exemption was then extended to cover the entire UAE.

Deputy director general Saeed Khalifa Al Marri admitted that some offices had been late in enforcing the decision due to some confusion over which emirates it applied to, but said everyone was now complying, adding the authority had received complaints against traders cutting imports to damage supply and increase prices.

The cost of raw materials has risen dramatically in recent weeks, placing huge pressure on developers already struggling to finish projects on time and on budget.

According to Emirates Business, a tonne of cement was selling on Tuesday for 4,200 dirhams, compared to 3,780 dirhams two weeks ago.

The price of cement rose by 25% in the first week of March as oil, needed to manufacture the material, soared to record highs above $110.

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