KARACHI, June 17: After detaining 23,300 tons of Chinese cement on June 9, at the Karachi Port, the Customs authorities have detained another shipment of around 21,500 tons Port Qasim few days back on the same ground -- not meeting the standard of Pakistan Standard Institute (PSI) relating to magnesia oxide (MgO).

Around 44,800 tons of cement is now awaiting clearance at both the ports as the Customs has referred the case to the commerce ministry, sources said.

Importers had filed the goods declaration (GD) for clearance of shipment at the Karachi Port on June 8, but the Customs had refused to clear the consignments, which arrived in 50 kg bags packing, owing to higher ratio of MgO as compared with the locally produced cement.

The Appraisement Collectorate in a letter informed the Central Board of Revenue (CBR) that the analysis certificate of the manufacturers of Chinese cement revealed composition of magnesia oxide at 4.25 per cent, while the standard of cement published by PSI did not allow MgO ratio in cement exceeding four per cent.

The Collectorate in its letter termed the presence of excess quantity of MgO in cement a violation of para 16B (viii) of Import Policy Order 2005-06 and said that the CBR’s instructions in this regard are listed in letter No. 1(31)TAR-1/90 dated 17.10.2005. It said that the importers had been apprised of the foregoing position accordingly with the advice to approach the concerned ministry for a reference to Import Policy Order.

An official at Port Qasim said on Saturday that some quantity of Chinese cement had been sent for laboratory test and the report is still awaited.

An importer of cement said that the Customs was actually awaiting clearance from the ministry of commerce and there was no need for a lab. test.

On one hand the government encourages the importers to bring cement from various countries and on the other hand it is creating hurdles in its clearance, he said adding that the lab. test report will arrive next week. However, it is not yet clear as to what strategy will Customs adopt in case MgO’s content in Chinese cement is proved over four per cent against the PSI standard.

He added that the importers were now fighting two battles for Chinese cement -– first they are competing with the locally produced cement, whose prices have fallen to Rs290-300 per 50 kg bag from Rs400 and secondly, a fight at the Customs’ stage.

He expressed surprise over the role of ministry of industry, which had advocated the case of Chinese cement (Cheeta brand) on the quality ground last week, terming it as per standard of British and Pakistani cement standards.

The importer recalled that the Appraisement Group-I had created problems in the case of betel nuts imports few years back and now they were creating problems in cement import.

He said the international standard of MgO is five per cent but Pakistan follows the old four per cent standard. The Chinese cement is being imported at $72 per ton and it will be available in the market at Rs250 per 50 kg bag. The same cement is being used in various construction projects in Dubai, he added.