DTI slaps cement imports with 3-year safeguard duty

MANILA, Philippines — The Department of Trade and Industry (DTI) is imposing a definitive safeguard duty on cement imports over a three-year period to allow local manufacturers to become more competitive and minimize impact on consumers in terms of prices.

Trade Secretary Ramon Lopez said yesterday the DTI has completed its evaluation of the recommendations made by the Tariff Commission (TC) and decided to impose a definitive safeguard duty which would be effective for three years.

In particular, a safeguard duty amounting to P250 per metric ton (MT) or P10 per 40-kilogram (kg) bag would be slapped on imported cement in the first year of implementation.

This safeguard duty would be reduced to P225 per MT or P9 per bag by the second year of implementation and trimmed further to P200 per MT or P8 per bag by the third year.

“The rationale for the safeguard level is to balance national interest, minimizing the impact to prices for buyers and users while addressing the industry injury issue, and yet still encouraging local manufacturers to continuously pursue efficiencies to be more globally competitive,” Lopez said.

He said the safeguard duty would take effect after issuance of relevant Customs Memorandum Order or 15 days after the DTI order is published in two newspapers.

The safeguard measure on cement imports would be subject to review and may be modified by the DTI when necessary.

While the safeguard measure is in place, the domestic industry will have to comply and implement their adjustment plans.

To recall, the TC last month recommended the imposition of safeguard duty of P297 per MT or P12 per 40-kg bag of cement.

TC’s recommendation is higher than the provisional safeguard duty of P210 per MT or P8.40 per 40-kg bag ordered by the DTI and in effect for 200 days or until Sept.10.

TC made the recommendation after it conducted public hearings for the motu proprio initiated by the DTI to look at whether increased cement imports have caused serious injury to the domestic industry.

Government can impose safeguard measures or higher duties on goods when increased imports cause harm to the local industry under Republic Act 8800 or the Safeguard Measures Act.