DTI orders safeguard duty on cement imports
Credit to Author: The Manila Times| Date: Thu, 17 Jan 2019 16:21:25 +0000
The Trade department has slapped a provisional safeguard duty of P8.40 per bag on cement imports to address a shipments surge said to be hurting the domestic industry.
The amount, equivalent to just under 4 percent of the average retail price of P220 per 40-kilogram bag, should paid in the “form of a cash bond” and will remain in effect for 200 days, Trade
Secretary Ramon Lopez told reporters on Thursday.
The decision was reached just days after cement importers warned of possible supply shortages if safeguards were imposed.
While the Tariff Commission still has to finish a formal investigation, Lopez claimed that “imports of cement increased from only 3,558 metric tons in 2013 to more than 3 million metric tons in 2017 and the share of imports increased from only 0.02 percent to 15 percent during the same period”.
“With the elements of surge and injury clearly established, DTI (Department of Trade and Industry) is mandated to impose a safeguard duty. In determining the amount of duty, however, the DTI balances the interests of all stakeholders—and has given particular attention to ensuring that supply remains steady and that prices will not increase,” he added.
Lopez said that while the cement industry was considered strategic, it receives no tariff protection as imports currently enter at zero duty.
“[S]afeguard duties are legitimate tools in trade remedies to assist industries which have experienced a surge in importation and a decline in sales and profitability,” he added.
“Relying solely on imports and being at the mercy of global supply and demand situation is risky and irresponsible considering changes in global demand and supply conditions, and will only lead to too much dependence on imports, leading to perennial trade deficit.”
The P8.40/bag duty is the “level that will ensure price and supply stability,” the Trade chief said, adding that the current domestic capacity of 35 million metric tons domestic capacity was enough to meet the estimated demand of 25 million metric tons.
Cement manufacturers will be required to maintain their current retail prices and the Trade department will be on the watch for price hikes.
Asked when the safeguard duty would take effect, Lopez replied “around February 8” given the requirements of drafting an official customs order and having this published.
Anna Leah E. Gonzales
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