The Department of Trade and Industry (DTI) received position papers from five local cement manufacturers on the Motu Proprio Preliminary Safeguard Measures investigation on cement imports from various countries that the agency had launched.

Cement makers had indicated their support for the imposition of safeguard measures on cement as cheap imports continue to flood the market.

The investigation, ordered by Trade Secretary Cristina Aldeguer-Roque, covering cement imports from 2019 to June 2024 is classified under AHTN Codes 2523.29.90 and 2523,90.00, and has already rolled out.

“We have an ongoing acceptance of comments and position papers from all interested parties. To date, five local companies have submitted their position papers on the said case,” the DTI Bureau of Import Services said in an email on Monday.

“Thus, the investigation starts on the publication of the notice of initiation, which is 31 October 2024, in two newspapers of general circulation,” the department said.

Unfair competition

Earlier, the Bureau of Customs (BoC) admitted that imported cement continues to pour into the country in the first three quarters of the year, hurting local cement manufacturers even if the latter are producing substantial stocks for local consumption.

Data from the BoC revealed that cement imports reached 6.2 million tons from January to October 2024, five percent higher than last year, with October alone registering a record-high 870,000 tons.

The majority of imports (94 percent) come from Vietnam, with smaller portions from Japan (5 percent) and Indonesia (1 percent).

In March 2023, the BoC Customs Memorandum Order No. 05-2023, implementing the Department of Trade and Industry-Department Administrative Order 23-01, dated 14 February 2023, which ordered anti-dumping duties on imported Vietnamese cement for the next five years to avoid an “imminent threat” to the domestic cement industry.

The definitive anti-dumping duties apply to imports of ordinary Portland cement type 1 (AHTN 2017/2022 Subheading No. 2523.29.90) and blended cement type 1P (AHTN 2017/2022 Subheading No. 2523.90.00) from Vietnam.

 Commitment shown

The Cement Makers Association of the Philippines (CeMAP) and Eagle Cement expressed gratitude to Roque for the Preliminary Safeguard Measures investigation on DTI’s initiative.

“This critical step underscores the government’s commitment to ensuring fair competition and protecting the local cement industry from undue harm caused by excessive imports,” a statement from the cement group said.

The Federation of Philippine Industries has strongly supported the DTI action, recognizing the urgent need to safeguard the domestic cement sector.

“Despite the cement industry’s ample capacity of 50 million tons annually — sufficient to meet local demand estimated at 34 million tons — the influx of imported cement has caused substantial harm to domestic manufacturers,” according to Baja.

Further, he said the implementation of safeguard measures is vital to mitigating the adverse impacts of imports and preserving the competitiveness of local producers.

“The industry, together with its stakeholders, remains steadfast in its commitment to supporting government efforts to foster fair trade practices, sustainably promote local manufacturing, create jobs, and strengthen the national economy,” according to the CeMAP official.