BUSINESS

Cement group backs broader duties on Chinese, Indonesian imports

Vivienne Angeles (VA)

The Cement Manufacturers Association of the Philippines (CeMAP) welcomed the Department of Trade and Industry's (DTI)mdecision to expand safeguard duties on imported cement to include shipments from China and Indonesia.

Under Department Administrative Order No. 26-03, the expanded coverage follows data showing a significant increase in cement imports from the two countries.

The DTI first imposed a safeguard duty of P349 per metric ton in October 2025 on cement imports from various countries, excluding products originating from developing countries whose share of total imports was below 3 percent, in line with the Tariff Commission's recommendation.

Citing Bureau of Customs data for the first quarter of 2026, CeMAP said China now accounts for 23 percent of cement imports while Indonesia accounts for 8 percent, both exceeding the exemption threshold.

The group said the previous exclusion of China and Indonesia weakened the safeguard mechanism and gave their imports an advantage in the domestic market.

“The expanded coverage is a long-awaited correction that restores fairness, strengthens local manufacturing, and protects Filipino jobs,” CeMAP said Tuesday.

CeMAP Executive Director Renato Baja said the local cement industry continues to operate at low utilization rates of around 53 percent despite having a total installed capacity of 53 million metric tons (MMT).

According to Baja, domestic cement demand reached an estimated 34 MMT last year, with about 6 MMT supplied through imports, reducing local production to 28 MMT.

The group said the cement industry remains capital- and energy-intensive, requiring scale and stability to remain competitive.

“The Tariff Commission already ruled on the existence of injury caused by imports on the domestic industry in its final report. Safeguard measures is also crucial for Filipino livelihoods, national industry resilience, and the country’s long-term economic strength,” it added.

CeMAP noted that local manufacturers produce cement that complies with Philippine National Standards and are capable of meeting domestic demand while supporting economic activity through employment and related industries.