DTI adopts Tariff Commission’s lower safeguard duty on imported cement

Amid calls from local industry players to impose higher safeguard measures on imported cement, the Department of Trade and Industry (DTI) on Tuesday decided to adopt the recommendation of the Tariff Commission (TC), saying the move benefits both local manufacturers and consumers.

Trade Secretary Cristina Roque announced that the DTI will implement a safeguard duty of P14 per 40-kg bag, or P349 per metric ton, on imported Ordinary Portland Cement Type 1 and Blended Cement (AHTN 2022 Subheading Nos. 2523.29.90 and 2523.90.00) for three years, as recommended by the TC.

The decision falls short of the Cement Manufacturers Association of the Philippines’ (CeMap) appeal for a higher rate of at least P600 per metric ton, or P24 per bag, to help local producers compete with imported cement.

Subject to monitoring

According to Roque, the safeguard duty will be closely monitored and subject to review to ensure stable prices and adequate supply in the market.

“The measure is intended to level the playing field between domestic manufacturers and importers and is not expected to be passed on to consumers, as the safeguard duty applies solely to imported cement,” she said in a statement.

Roque explained that the recommended safeguard rate represents only about 3 to 4 percent of prevailing retail prices. The DTI also clarified that importers will be refunded the excess cash bond paid, or the difference between the provisional and final duty assessed, once the corresponding Department Order is issued.

The trade chief emphasized that the decision considers the country’s urgent need for construction materials amid ongoing rehabilitation efforts following recent earthquakes.

“The Department remains mindful of the recent earthquakes that have severely affected several areas across the country, underscoring the critical need for cement in the rehabilitation and reconstruction of impacted communities,” Roque said.

Temporary safeguard

The DTI said it would continue monitoring the impact of the safeguard measure to prevent any unwarranted price increases and ensure that the tariff remains proportionate to the injury suffered by domestic producers.

“The DTI will regularly review the safeguard duty to adjust its scope and intensity in response to market conditions,” Roque added. “The Department will actively regulate the effects of safeguard tariffs to maintain a balanced environment where both local manufacturers and cement importers can adapt, compete, and thrive, particularly during periods of calamities or supply disruptions.”

Roque reaffirmed that the safeguard duty is a temporary measure designed to restore fair competition and uphold consumer welfare.

CeMap has yet to issue an official statement on the DTI’s decision as of press time.