Gov’t regulating plywood amid imports influx

From July 2015 to June 2019, the country imported 194,826 MT of plywood worth $75.58 million.

The government is looking again at including plywood among products under mandatory certification after imports of the construction material rose nearly four times since it was removed from the list in 2015.

The Department of Trade and Industry (DTI) on Wednesday said it will draft a department administrative order (DAO) “if needed” to address the influx of plywood imports, which it said were “not tested for quality.”

“We saw the numbers in plywood. In a three-year period since plywood was removed from the list in 2015, imports have rapidly increased and these are not tested for standard compliance. It’s good if these products comply with the standards,” DTI secretary Ramon Lopez said.

“We are adding more products in the mandatory compliance since many of them were released from the list. Since then, we saw import surges of these products. And since they are not subjected to mandatory testing, substandard products can come in,” he added.

Citing data from the Bureau of Philippine Standards (BPS), the trade agency said plywood imports from January to June in 2015 was merely at 8,624 metric tons (MT), valued at $4.5 million.

Comparatively, imports in the same period in 2019 have increased to 32,768 MT, with a value of around $12.75 million. From July 2015 to June 2019, the country has imported 194,826 MT of plywood worth $75.58 million.

The DTI said it has held a consultation meeting with stakeholders in the plywood industry for the possible regulation of plywood imports, with a view of stopping the circulation of substandard plywood products in the market.

The agency said the untested imports threaten not only public safety but also the local manufacturing industry, as the imports could be sold at a low price, forcing local players to match the prices and sell at a loss, to the detriment of the domestic manufacturing base.

The proposed DAO will require plywood products to comply with the technical regulation for mandatory PS Licensing Scheme under the International Standard for Plywood, PNS ISO 12465:2017.

Samples of the product will have to undergo testing under the BPS before the latter could determine whether the products are fit for the issuance of PS Quality or Safety Certification marks to local manufacturers and Import Commodity Clearances to importers.

Aside from the potential DAO for plywood, the DTI is also working on a draft DAO for ceramic tiles. The agency has already issued new technical regulations for cement steel bars and glass, and has ongoing consultations for the regulation of black iron and galvanized iron (BI/GI) steel pipes and steel sheets.