Two sides of the coin

The Department of Trade and Industry (DTI) has found itself being pummelled by cement importers who are claiming that a recent DTI issuance is unfair not only to said importers, but more importantly to the consumers.

DTI Administrative Order 17-02/05 requires cement importers who are not manufacturers to secure an import commodity clearance (ICC) in addition to the product safety (PS) mark.

Specifically, the new DAO required the application of Philippine standards licenses on foreign producers of cement imports and the ICC on cement imports, as well as sets a minimum paid up capitalization of P20 million for all cement importers to weed out fly-by-night importers.

The ICC is, however, not applicable to cement manufacturers who import the construction material.

There have been insinuations that cement manufacturers-importers have colluded with the DTI after the former failed to pressure their foreign suppliers not to sell to pure importers.

These pure cement importers are saying that all these boil down to competition.

The more supply there is, the greater the downward pressure is on prices of goods. And because there are more imported cement in the market, cement prices have dropped to less than P200 per bag compared to P300 around four years ago.

Increased supply is also driving down profits. One major cement company for instance, has registered a 46 percent drop in its first semester profits due to what it says is heighted competition from importers.

Pure cement importers now fear that this additional bureaucratic layer in the form of a new requirement can be used to delay release of their shipments at customs warehouses, given that there are only two testing centers for an ICC.

They argue that it is also unfair not to demand an ICC from manufacturers-importers since they source their cement from the same foreign suppliers.

News reports say that two cement importers have already asked the Makati Regional Trial Court to issue a TRO on the implementation of the order.

But recently, Trade Secretary Ramon Lopez defended the assailed order, saying the only reason post-import standard is being done is to protect consumers from possible substandard imported cement. He added that this is being done in other countries.

Lopez noted that cement manufacturers which would import cement are not required to secure an ICC since they are classified as low risk, therefore likely to ensure product quality and would not risk brand reputation.

Meanwhile, local cement manufacturers argue that contrary to claims that all cement importers source from the same foreign supplier, Philippine importers source their cement from different countries like Vietnam where there are six major producers, Indonesia, Thailand, South Korea and China.

The DTI is also saying that there are cement bags sold in local hardware stores that either do not have PS markings, or worse, do not even have manufacturing dates, which means that they were sourced from manufacturers which do not meet Philippine standards for product quality.

This, the department explained, is one reason why DAO 17-05 requires importers to source cement only from foreign manufacturers holding a valid PS license.

Local industry officials are also emphasizing that contrary to claims that importer-manufacturers are exempt from the ICC requirement, the DAO in fact states that the exemption only applies if the imported cement bears the same brand reflected in the local PS license certificate of the importer-manufacturer. 

They added that local manufacturers are required to place their brand, and therefore their reputation, on the bags of all the imported cement that they sell locally, thus minimizing the risk of manufacturers selling low-quality products.

 All that the consumers want is high-quality but affordably priced cement. Let us hope that whoever wins this war can give the consumers what they deserve.

On the way out?

Are her days in the Cabinet numbered?

Sure looks like it, especially after no less that President Duterte in his State of the Nation Address last July 24 warned Health Secretary Paulyn Ubial that she would be fired if she fails to have various medical equipment delivered to AFP hospitals in the next 30 to 60 days.

The President said that the procurement procedure need to be changed or Ubial will be changed. She was the only Cabinet Secretary reprimanded during the SONA.

Earlier this month, Duterte told soldiers in Malaybalay, Bukidnon that he has ordered Ubial to speed up the delivery of various medical equipment for the various AFP hospitals, expressing frustration over the delay.

It is not only the head of the executive department that has expressed dismay over Ubial’s performance. Even the Commission on Appointment, in its last regular session, had bypassed her twice. One more bypass and she’s out, since the President can no longer reappoint her.

Legislators claim that Ubial has a record of flip-flopping on several health issues and issuing contradicting statements. The health secretary has changed her stance on major health issues, such as the dengue vaccine, the status of the Zika virus in the country, and recently, the number of evacuees who died of health-related causes in Marawi City.

Before she became DOH head, Ubial was assistant secretary when the P3.5-billion dengue vaccine program was approved during the Aquino administration. On July 18, 2016, Ubial signed a resolution recommending the deferment of the program, saying the vaccines are not proven safe and told a congressional panel deliberating the 2017 budget that a panel of experts convened by the DOH revealed the dengue vaccine has potential health risks.

But on Sept. 28, 2016, she issued a certificate of exemption for the vaccine, Dengvaxia, paving the way for its release.

When she was asked in Congress why she issued the certificate of exemption for the dengue vaccine, Ubial apologized, saying she had forgotten about the resolution.

Another case of flip-flopping was when Ubial said in a press conference September last year that the Philippines was Zika-free as there was no local transmission of the virus. A couple of weeks after, she admitted that there were indeed local transmissions.

And then, of course, her most recent faux pas was on the number of deaths in the Marawi evacuation centers where she gave a number lower than actual reports.

Lately, Ubial has metamorphosed, from merely flip-flopping to going beyond what the law prescribes.

Executive Order 26 provides for the establishment of smoke-free environments in public and enclosed places. But then, Ubial asks local government units to issue local ordinances which is in violation of RA 9211 or the Tobacco Regulation Act of 2003.

She also announced that the DOH is working on the implementing rules and regulations of EO 26 where there is no need of this. Ubial has forgotten that it is the Inter-Agency Committee on Tobacco (IACT), composed of different government agencies and representatives from the tobacco industry and health organizations, which is the governing body and which is mandated by law to regulate the tobacco industry.

In addition to her flip-flopping and illegal issuances and actions, Ubial has also been questioned in Congress for incompetence and using government resources to her own benefit.

Rep. Harry Roque, who opposed Ubial’s appointment, has said that as chairman of the board of the Philippine Health Insurance Corp. (PhilHealth), she controls internal affairs for her own benefit. Roque has also questioned Ubial’s excessive foreign travels, her alleged incompetence, persistent lying to Congress, wastage of government resources, and corruption.

ACTS OFW party list Rep. Aniceto John Bertiz III and lawyer Restituto Mendoza have also filed their opposition to Ubial’s appointment.

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