DTI slaps anti-dumping duties on cement imports from Vietnam

MANILA, Philippines — The Department of Trade and Industry (DTI) is slapping temporary anti-dumping duties on cement imports from Vietnam after the agency’s probe showed such products are being dumped in the country and hurting local manufacturers.

Trade Secretary Ramon Lopez said the DTI found out that Type 1 and Type 1P cement from Vietnam are being dumped in the country and causing injury to the domestic cement industry.

“In view thereof, provisional anti-dumping duties in the form of a cash bond shall be imposed for four months from the date of effectivity of this order on importations of Type 1 and Type 1P cement originating from Vietnam,” he said.

The computed dumping margin or amount of bond for Type 1 cement imports from Vietnam ranges from $1.02 per metric ton (MT) to $10.53 per MT or 2.69 percent to 31.87 percent of the export price.

For Type 1P cement imports from Vietnam, the computed dumping margin or amount of bond ranges from $1.16 per MT to $12.79 per MT or 3.80 percent to 29.20 percent of the export price.

Type 1 cement is ordinary Portland cement, which has 90 to 95 percent clinker content and is used for high concrete designs with a minimal cement factor requirement. Meanwhile, Type 1P is blended cement composed of Portland cement and other natural mineral materials and is used for general purpose construction.

Under Republic Act 8752 or the Anti-Dumping Act of 1999, the DTI may initiate an anti-dumping investigation following receipt of a written application for such from the domestic industry.

Dumping occurs when an exporter sells products to an importer in the Philippines at prices lower than the normal value in its home country.

The DTI’s findings are based on its preliminary investigation of a petition filed by cement manufacturers Republic Cement & Building Materials Inc., CEMEX Philippines Holdings Inc.’s subsidiaries Solid Cement Corp. and Apo Cement Corp., and Holcim Philippines Inc. for anti-dumping duties on cement imports from Vietnam.

The DTI’s period of investigation for dumping covered imports from July 2019 until December last year, while the probe for injury considered information from 2017 until June 2020.

In its report on the preliminary anti-dumping measures investigation, the DTI said there are indications dumped imported cement from Vietnam is the dominant cause of injury to the domestic industry.

The DTI said the volume of cement imports from Vietnam accounted for 55 percent of the country’s total imports from July 2019 to December last year, despite the imposition of safeguard duty on cement imports.

Also contributing to the injury suffered by the local cement industry is price undercutting or the extent at which the allegedly dumped product is consistently sold below the domestic selling price of the like product.

The DTI said price undercutting was at 23 percent in 2019 and 24 percent in the first semester of last year, computed based on the difference between the average landed cost per MT of imported cement and the price per MT of domestically produced cement.

While demand for cement grew during the period of investigation, the DTI said local producers were not able to gain from the situation, with their market share declining to 78 percent in 2019 from 85 percent in 2017 as the share of dumped imports increased.

“The industry suffered loss of market share, declining domestic sales, production, utilization rate, reduction in employment, increased cost of production and inventory,” the DTI said.

The DTI’s imposition of provisional anti-dumping duties will take effect upon the Bureau of Customs’ issuance of a relevant order.

To determine if there should be definitive anti-dumping duties on cement imports from Vietnam, a formal investigation will be conducted by the Tariff Commission.