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The Department of Trade and Industry (DTI) ordered the imposition of anti-dumping duties on imported cement from Vietnam for five years
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DTI cited imminent near future threat of material injury to the domestic cement industry
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The definitive anti-dumping duties will be imposed on imports of ordinary Portland cement type 1 and blended cement type 1P originating from Vietnam
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DTI Department Order No. 23-01 will take effect upon the issuance of the relevant order by the Bureau of Customs
The Department of Trade and Industry (DTI) is imposing anti-dumping duties on cement from Vietnam for five years, citing imminent near future threat of material injury to the domestic cement industry.
The definitive anti-dumping duties will be imposed on imports of ordinary Portland cement type 1 (AHTN 2017/2022 Subheading No. 2523.29.90) and blended cement type 1P (AHTN 2017/2022 Subheading No. 2523.90.00) originating from Vietnam, according to DTI Department Administrative Order (DAO) No. 23-01 dated February 14.
“All-others’ rates” will be applied to foreign exporters who have not been accredited by the Tariff Commission (TC), or those who failed to cooperate sufficiently during the formal investigation, as well as new foreign exporters who have not exported the Vietnam cement to the Philippines during the period of investigation.
The “all others’ rates” are 23.07% of the export price for type 1 and 23.33% of the export price for type 1P.
For exporters or producers in Vietnam who have not exported type 1 and type 1P cement to the Philippines from 2017 to 2021, their individual margins of dumping may be determined following a review, pursuant to Republic Act No. 8752, also known as the Anti-Dumping Act of 1992.
Investigation on exporters determined to have de minimis and/or negative dumping margins, meanwhile, has been terminated. As a result, no anti-dumping duty—even at 0% rate—will be imposed on the exports of the covered cement types. The “all-others’ rates” will likewise not be applied and are thus excluded from the scope of the DAO.
Cash bonds deposited/paid by exporters under DTI DAO 21-07 and Bureau of Customs (BOC) Customs Memorandum order (CMO) No. 38-2021 will be returned immediately upon the effectivity of DAO 23-01. These orders implemented provisional anti-dumping duties on the importation of cement from Vietnam.
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In December last year, the DA—through DAO 22-17—recommended the imposition of safeguard duty after the TC “established that the threat of material injury to the domestic cement industry is imminent in the near future from dumped imports from Vietnam” and ordered that anti-dumping duties be imposed on imports of ordinary Portland cement type 1 and blended cement type 1P originating and exported from Vietnam for a period of five years.
The investigation stemmed from the application filed in April 2021 by cement manufacturers CEMEX Holdings Philippines (Solid Cement Corp. and APO Cement Corp.), Holcim Philippines, Inc., and Republic Cement and Building Materials, Inc.
The local cement manufacturers alleged that the dumping of imports of Type 1 and Type 1P cement originating from Vietnam was causing material injury to the domestic industry.
DTI, acting under Republic Act (RA) 8752, or the Anti-Dumping Act of 1999, said it had reviewed the evidence provided with the application and “determined the existence of sufficient evidence to justify the initiation of an investigation.”
After the issuance of DTI DAO 21-17, which recommended the imposition of the safeguard duty, motions for reconsiderations were filed by certain exporters and importers. The motions for reconsiderations were submitted to TC— which in a report on February 13—said that “considering that the arguments raised by the movants are mere rehash of previously submitted arguments, the TC finds no cogent reason to deviate from its final determination/decision” in its final report dated October 11, 2022.
According to TC’s final report, from 2019 to December 2020—the period of investigation (POI) for dumping determination—there were price differences between the normal values and export prices to the Philippines of ordinary Portland cement type1 and blended cement type 1P originating from Vietnam.
The Commission also said the volume of imports of the two cement types at dumped prices is not negligible, accounting for 53% of total Philippine cement imports from July 2019 to December 2020.
It was noted that while the domestic cement industry was not materially injured by the dumped cement from Vietnam during 2017 to 2021, the “existence of threat of material injury to the domestic industry is imminent in the near future as indicated by the significant rate of increase of dumped imports into the Philippines capturing substantial market share; presence of price undercutting, price depression and price suppression during the POI; the substantial available production capacities of Vietnam that can accommodate increasing exports to the Philippines, its top export market; and the openness of the Philippine cement market.”
DAO 23-01 supersedes DAO 22-17 and will take effect upon the issuance of the relevant CMO by the Customs bureau.
