Cement imports from China, Indonesia face new safeguard duties

The Department of Trade and Industry has expanded its safeguard measures on imported cement to include shipments from China and Indonesia after import volumes from both countries exceeded the threshold that previously exempted them from the trade remedy.

Under an amendment to Department Administrative Order No. 25-15, the DTI removed China and Indonesia from the list of developing countries excluded from the imposition of safeguard duties on Ordinary Portland Cement and Blended Cement. Imports from the two countries will now be subject to a safeguard duty of P14 per 40-kilogram bag, or P349 per metric ton, during the first year of implementation.

The DTI said its review showed cement imports reached 6.02 million metric tons in 2025 and 1.29 million metric tons from January to March 2026. While Vietnam remained the Philippines' largest cement supplier, accounting for 79 percent of imports in 2025 and 63 percent in the first quarter of 2026, imports from China rose to 11 percent and 23 percent, respectively, while Indonesia's share increased from 6 percent to 8 percent.

According to the agency, the growing import shares of China and Indonesia exceeded the less-than-three-percent de minimis threshold under safeguard rules, prompting the revision.

The DTI said it informed interested parties, including the governments concerned, of the review on 17 March 2026 and invited them to submit comments and supporting documents before the amendment was finalized.

The agency added that the composition of countries exempted from safeguard measures may still change depending on future import data, while the level of safeguard duties will remain subject to periodic review under Republic Act No. 8800, or the Safeguard Measures Act.

The move was welcomed by the Cement Manufacturers Association of the Philippines, which said the previous exclusion of China and Indonesia weakened the safeguard mechanism and gave imported products an advantage over locally manufactured cement.

CeMAP Executive Director Renato Baja described the expanded coverage as a long-awaited correction that would help restore fairness in the market, strengthen domestic manufacturing and protect jobs.

Baja said the local cement industry continues to operate at only 53 percent utilization despite having an installed capacity of 53 million tons. He noted that while domestic cement demand reached an estimated 34 million tons in 2025, imports accounted for 6 million tons, reducing local production to 28 million tons.

"The Tariff Commission already ruled on the existence of injury caused by imports on the domestic industry in its final report. Safeguard measures are also crucial for Filipino livelihoods, national industry resilience, and the country's long-term economic strength," Baja said.

CeMAP added that domestic manufacturers are capable of meeting local demand while adhering to Philippine National Standards and generating economic benefits through employment, community development and environmental initiatives.