Amid clamors from local industry players to impose higher safeguard measures for imported cement products, the Department of Trade and Industry (DTI) on Tuesday decided to adopt the recommendation of the Tariff Commission (TF) in terms of pricing, emphasizing that the decision is beneficial for both local cement manufacturers and consumers.
On Tuesday, Trade Secretary Cristina Roque announced that DTI will adopt TC’s recommendation on the imposition of a safeguard duty on imported cement amounting to P14.00 per 40-kg bag or P349 per metric ton of Ordinary Portland Cement Type 1 and Blended Cement (AHTN 2022 Subheading Nos. 2523.29.90 and 2523.90.00) for a period of three years.
This is way lower than the request of members of Cement Manufacturers Association of the Philippines (CeMap) for at least P600 per metric ton or P24 per bag of cement safeguard duties on cement imports to make local products more competitive against imported ones.
Subject to monitoring
According to Roque, the imposition of the safeguard duty will be subject to dynamic monitoring and review to ensure that prices remain stable and supply stays sufficient to cover demand at any given time.
Further, Roque noted that the TC’s recommended safeguard duty rate represents only around 3–4 percent of prevailing retail prices.
“This 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.
The Department likewise clarified that the excess cash bond paid by importers or the difference between the provisional and final duty assessed will be refunded once the corresponding Department Order is issued.
Critical need for cement
Secretary Roque emphasized that “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.”
The DTI stressed the importance of ensuring an adequate and affordable supply of cement nationwide.
The implementation and impact of the safeguard measure on cement prices will be closely monitored by the DTI to prevent any unwarranted price adjustments and to ensure that the duties remain at levels necessary to address the serious injury suffered by the domestic industry,” said the DTI secretary.
Regular review of safeguard duty
She added, “The DTI will regularly review the safeguard duty to adjust its scope and intensity in response to market conditions. 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.”
Moreover, the DTI chief reaffirmed that the safeguard measure is temporary, designed to restore fair competition and ensure that consumer welfare is maintained.
CeMap was sought for comment, but it has yet to release its reaction on the DTI’s decision, as of this posting.