Mariwasa Ceramics seeks safeguard measures on tile imports

MANILA, Philippines — The Department of Trade and Industry (DTI) has launched a preliminary investigation into the possible application of safeguard measures on ceramic floor and wall tile imports following a complaint filed by Mariwasa Siam Ceramics Inc.

Mariwasa is representing the ceramic tile industry on claims imports have increased and contributed to the serious injury of local players. 

Trade Secretary Ramon Lopez said the DTI “finds prima facie evidence to initiate and conduct a preliminary safeguards investigation to determine whether ceramic floor and wall tile is being imported into the Philippines in increased quantities and is causing serious injury to the domestic industry.”

DTI’s report is based on its evaluation of evidence submitted by the ceramic tile industry as represented by Mariwasa, one of two producers of ceramic tiles in the Philippines, with an annual production of 154,000 metric tons (MT), accounting for 86 percent of the total local output. 

The other local producer of ceramic tiles is Formosa Ceramic Tiles Manufacturing Corp. with an annual production of 30,000 MT or 14 percent of  the national output. 

Other companies previously engaged in local production of ceramic tiles but had stopped are Eurotiles Industrial Corp. which halted manufacturing operations in March 2017, and Lepanto Ceramics Inc. in 2013. 

Ceramic tiles are used as floor and wall covering for indoor and outdoor area in both residential and commercial buildings. 

DTI’s report showed imports of ceramic tiles rose from 2013 to 2016. 

In 2017, imports were 13 percent lower than 2016 but higher by 2,192 percent than 2014 or the pre-surge level. 

For the first half last year, imported ceramic tiles accounted for 46 percent of the 2017 level and already surpassed the 2013 to 2015 imports. 

Among the major suppliers of ceramic tile imports in the country are China, Indonesia and Vietnam. 

The DTI report also showed the market share of the local ceramic tile industry declined even while there were significant increases in imports from 2013 to 2017.

In particular, the local industry’s market share dropped to 14 percent in 2017 from 96 percent in 2013, while the share of imported ceramic tiles grew to 86 percent in 2017 from four percent in 2013. 

Apart from declining market share, the report also showed there were indications increased imports hurt the local industry in terms of production, sales, capacity utilization, incurred losses, depression and undercutting.

Under Republic Act 8800 or the Safeguard Measures Act, a country can impose safeguard measures or higher duties on imported goods to provide relief to local players.

The safeguard measures can be applied when it is found there is an increase in imports of a certain commodity and such has hurt the local industry.