DTI acts to prevent mislabelling

To plug a loophole in its regulations, the Department of Trade and Industry has issued a new set of rules that hopefully will prevent cement importers, particularly those who have cement plants here, from marketing and selling imported cement as a product of the Philippines – which is a clear case of misleading the public and of unfair competition.

I had tackled this issue in a previous column, discussing the concerns raised by the Cement Manufacturer’s Association of the Philippines (CeMAP) over imported cement being mislabelled as locally produced.  The particular local cement company, which is the subject of the complaint with the DTI, has a small cement facility in the Philippines. However,  it also imports cement in bulk and  sells imported cement, as well as locally produced cement. As such, there is no way of knowing whether the product contained in the cement bags being sold in the hardware stores came from their Philippine plant or from Vietnam.

Based on the guidelines of the DTI, when a manufacturer is accredited with the Bureau of Product Standards (BPS), they can label their product as made in the Philippines, even if the product is imported.

According to DTI Secretary Mon Lopez, the department released last Oct. 29 a new memorandum circular to address the issue on proper marking of cement packed in the Philippines, but containing cement manufactured in other countries. The new memorandum circular  contains the supplemental guidelines for the implementation of Department Administrative Order (DAO) 17-06, series of 2017, or “The New Rules and Regulations Concerning the Mandatory Certification of Portland Cement and Blended Hydraulic Cement with Pozzolan.”

Lopez said the new MC came after the DTI-BPS reviewed its policy on the manufacture and importation of cement products. The move stemmed from the concerns raised by local manufacturers on the imported cement products bagged in the country, but labeled as “Product of the Philippines.”

He explained that consistent with DAO 17-06:2017, the DTI-BPS issued separate licenses for the manufacturing and bagging facilities on a per plant site/location basis, and mainly for the purpose of ensuring product standard compliance. However, there has been some confusion on the required product markings as the earlier DAO did not include the marking requirements for bagging facilities to indicate the country of manufacture, thus, necessitating a new circular clarifying this requirement for concerned manufacturers and/or importers.

Upon issuance of the supplemental guidelines, the DTI-BPS will  conduct verification and monitoring of cement bagging facilities in the country to ensure immediate compliance on the prescribed product markings.

Under the new MC, all locally manufactured and imported cement products shipped in bulk and bagged in a PS licensed bagging facility shall be permanently marked with the name and address of the manufacturer, the country of manufacture, and the words “Bagged by:”, followed by the name and address of the bagging facility, among others.

Lopez said that in addition, manufacturers and operators of bagging facilities are directed to immediately cease all printing operations of previously approved cement bag designs indicating “Product of the Philippines,” especially if the cement is imported in bulk.

The DTI-BPS will  conduct an inventory of all printed cement bags for recording purposes and immediate corrective action to reflect the correct country of manufacture, according to the DTI, in a letter sent to the Star in response to this writer’s column published last Oct. 24.

The DTI secretary emphasized the importance of transparency and accuracy of the product markings for both locally manufactured and imported cement products, adding that it is incumbent upon importers and/or manufacturers to properly label their products and reflect the country where such products were produced.

This, Lopez said, would properly guide consumers, “especially at this time of  the pandemic, during which we encourage our countrymen to patronize locally produced products to support the economy.”

He said that as part of the DTI’s mandate of boosting market demand for the country’s vibrant and diverse local products and services, the department has been strengthening its long-standing campaign of “Buy Local, Go Lokal” in light of the drastic effect of the COVID-19 pandemic on the local economy.

The new guidelines, he said, are all part of the efforts of the DTI-BPS to ensure a level playing field for local manufacturers vis-à-vis cement producers abroad. In carrying out the mandate of the department to protect and support local manufacturing industries, Lopez said the DTI would ensure that accurate information through products’ labels shall be provided to consumers to enable them to make informed decisions in their choice of products.

More importantly, he said, while cement importation has long been allowed, it is only under the Duterte administration that the DTI is providing safeguard measure to address any import surge.

To Secretary Mon, who by the way I have known way back as a hard-working member of the private sector, let me assure you that I support DTI’s efforts to protect local producers and consumers. We have the Consumer Act of the Philippines, which is supposed to “protect the consumer, promote his general welfare, and establish standards of conduct for business and industry” by adopting measures, including protection against deceptive, unfair, and unconscionable acts and practices, as well as provision of adequate rights and means of redress. Unfortunately, consumers either are not aware of their rights or are at the mercy of abusive producers who clearly have the upper hand given that they have the means to have their way. Fortunately,  we have the DTI to protect consumer rights and we will continue to call the department’s attention to these concerns. I hope that you will keep open your communication lines to this writer, because just like you, I only have the best interest of the public at heart.

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