Lopez responds to Hidden Agenda

While imported products are supposed to come from cement factories with Philippine Standard quality certification, the import system may be abused by unscrupulous importers who may bring in cement from uncertified sources. On the other hand, cement manufacturers in the country who may import from time to time to augment their local production volume and prevent shortage and upswing in cement prices, will get monitored at point of sale, not be required to secure ICC per shipment, for the following reasons: It is normal business operation to have some products of local manufacturers have toll-production arrangement with other manufacturers, local or abroad, to maximize cost and operational efficiencies.

Some production sources in their system may have the specialization to produce certain sizes or specifications, or would simply have the extra capacity to produce for the company in the Philippines.

The critical principle adhered to is that the specification and formulation of the products are dictated by Philippine company. Thus, the outputs are assured of quality and practically no distinction if the company produced the products in their local factories or through a toll producer from abroad. This is a usual practice among local companies and multinationals, which would normally toll produce, when necessary, some of their products from abroad.  

Local manufacturers would have registered brands that are sold in the local market, and the brands are usually known, trusted and would have earned brand equity and loyalty. Thus, importations of such brands by local manufacturers pose minimal risk of quality violations since these were produced following specific procedures and quality inspections as local manufacturers will not risk breaking the trust of the public on such local brands.

Risk of below standard imports for these products, sold under manufacturers’ registered brands, are therefore minimal or nil. Keeping the spirit of reducing bureaucracy and streamlining import procedures especially for cases with minimal or no risk.

Based on these rationale, we decided to have a differentiated approach, but still ensuring consumer protection.  

We need to ensure safety of the public through compliance to product standards, while at the same time encouraging growth of industries that will create more jobs and business (trabaho at negosyo) opportunities in the countryside, and uplift the lives of the Filipinos especially those who have less in life. - Trade Secretary Ramon Lopez