DTI slaps safeguard duties on float glass on

MANILA, Philippines — The Department of Trade and Industry (DTI) has ordered the application of provisional safeguard duties on clear and tinted float glass to mitigate the injury caused by increased imports to the domestic industry.

Trade Secretary Ramon Lopez said the provisional safeguard measures in the form of a cash bond amounting to P2,552 per metric ton (MT) for clear float glass and P2,835 per MT for tinted float glass as well as reflective glass would be imposed for a period of 200 days.

“The Department, acting under Section 7 of RA (Republic Act) 8800, the Safeguard Measures Act, found after preliminary determination that increased imports of the products under consideration have caused serious injury to the domestic industry, particularly in terms of declining market share, domestic sales, capacity utilization, production, employment, profitability and increased inventories,” he said.

“Landed costs of imports were found to be lower than the ex-plant prices of the domestic product,” he added.

DTI’s findings were based on its preliminary probe on the petition filed by the sole maker of float glass in the country, Pioneer Float Glass Manufacturing Inc. (PFGMI).

Clear float glass and tinted float glass are used for exterior and interior window and door openings, curtain walls, huge scenic openings, showcase windows, furniture applications, interior room partitions and basic glass for mirrors.

DTI’s preliminary findings showed the volume of imported clear float glass increased from 2013 to 2016. In particular, clear float glass imports which reached 3,918 MT in 2013, jumped 649 percent to 29,332 MT in 2014, grew further to 44,473 MT in 2015, and increased again to 50,999 MT in 2016.

In 2017, imports of clear float glass declined to 38,953 MT following anti-dumping measures imposed on clear float glass from China, but went up again to 64,325 MT last year.

Imports of tinted float and reflective glass also rapidly increased from 2013 to 2015. In particular, the volume of tinted float and reflective glass imports which reached 6,351 MT in 2013, grew 301 percent to 25,450 MT in 2014, and rose further by 119 percent to reach 55,789 MT in 2015.

In 2016, imports declined nine percent to 50,871 MT, and slid again by 11 percent to 45,365 MT in 2017, but grew 49 percent to 67,756 MT last year.

Major sources of clear and tinted float glass imports during the probe period are China, Indonesia and Malaysia.

As imports increased, the domestic industry registered sustained losses from 2013 to 2017 from operations of clear float glass, but recovered and registered net profit before tax last year.