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JG Summit unit’s petition for safeguard measure or duty dismissed following Tariff Commission’s recommendation
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Commission’s investigation showed no increase of LLDPE imports in past six years that would have threatened or seriously hurt the petitioner, JG Summit Olefins Corp
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JGSOC is the country’s sole local producer of LLDPE pellets and granules
There is no need to impose a safeguard measure or duty on imported linear low-density polyethylene (LLDPE) pellets and granules, as they were not imported in increased quantities during a six-year investigation period, the Department of Trade and Industry said.
Trade and Industry Secretary Ramon Lopez thus dismissed on June 3 a petition filed by JG Summit Olefins Corp. (JGSOC), the sole local producer of LLPE, to impose such a measure or duty to protect the local industry.
The Tariff Commission launched an investigation into the importation of LLDPE pellets and granules after JGSOC filed a petition with DTI last year seeking government protection for domestic LLPDE producers from importation of the packing material from various countries.
LLDPE is a substantially linear polymer resin that is used to produce packing material for food, beverage, consumer products and packaging.
The material is widely produced in countries around the region such as China, which dominates global LLDPE production at more than 30%, Singapore, Vietnam, Indonesia and Thailand.
On May 20, the commission sent its Formal Investigation Report to the DTI, saying it had ceased its investigation as the volume of imported LLDPE pellets and granules during the 2015-2021 period had not increased, “both in absolute and relative terms to domestic production.”
As such, “the determination of serious injury or threat thereof, causation, and unforeseen developments has become moot and academic,” the commission said.
The commission’s report prompted DTI to dismiss the JGSOC petition.
In Department Administrative Order 22-05, Lopez said “the application for general safeguard measures on the importation of LLDPE pellets and granules from various countries…is hereby dismissed.”
JGSOC, owned by the late industrialist John Gokongwei, filed the petition for safeguard measures on LLDPE imports based on a claim that increased imports of such hurt the domestic industry.
DTI endorsed to the commission last year JGSOC’s petition for a formal investigation on the matter after it found during its preliminary probe a causal link between increased imports of LLDPE and serious injury to the local industry.
The World Trade Organization, of which the Philippines is a member, allows its member countries to provide affected domestic industries relief against imports under circumstances specified in the General Agreement on Tariffs and Trade 1994 (GATT 1994).
Under Article XIX of GATT 1994, importing governments may take temporary safeguard measures, such as higher tariffs, tariff quotas, or quantitative restrictions, against imports if the products at issue are being imported in increased quantities, either absolute or relative to domestic production, and under such conditions as to cause or threaten to cause serious injury to the domestic industry.
But, as the Tariff Commission has found no cause or threat of serious injury to warrant imposition of measures to protect the local industry, it dumped the JGSOC petition.
