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DTI oks anti-dumping duties on cement from Vietnam

  • The Department of Trade and Industry approved the four-month imposition of anti-dumping duties on cement from Vietnam
  • Local cement manufacturers alleged the cement is being imported at dumped prices, hurting the domestic industry
  • DTI said anti-dumping duties will prevent further material injury to the domestic industry
  • The anti-dumping duties will take effect after the Bureau of Customs issues the relevant order

The Department of Trade and Industry (DTI) has approved anti-dumping duties on cement imports from Vietnam following allegations such shipments come in at dumped prices, hurting the domestic cement industry.

The provisional anti-dumping duties in the form of a cash bond will be imposed for four months from the date of effectivity of DTI Department Administrative Order (DAO) No. 21-07 on imports of ordinary Portland cement Type 1 and blended Type 1P cement originating from Vietnam.

DAO 21-07, dated November 29, will take effect once an order from the Bureau of Customs is issued.

DAO 21-07 said records of the case will be transmitted to the Tariff Commission for a formal investigation to determine if all legal requirements for application of definitive anti-dumping duties have been met.

DTI said it accepted on April 15, 2021 the application for anti-dumping investigation from cement manufacturers Republic Cement & Building Materials, Inc.; CEMEX–Solid Cement Corp., and Apo Cement Corp.; and Holcim Philippines Inc.

The manufacturers alleged imports of Type 1 and Type 1P cement originating from Vietnam are being dumped in the country, thereby causing material injury to the domestic cement industry.

DTI, acting under Republic Act (RA) 8752 or the Anti-Dumping Act of 1999, said last April it reviewed the evidence provided with the application and “has determined the existence of sufficient evidence to justify the initiation of an investigation.”

READ: DTI probes dumping of cement from Vietnam

Section 2 of RA 8752 provides that it is “the policy of the State to protect domestic enterprises against unfair foreign competition and trade practices. Towards this end, substantive and procedural remedies available to domestic enterprises shall be strengthened and made responsive to recent developments in world trade.”

The products covered by the petition fall under AHTN Codes 2523.29.90 and 2523.90.00 for Type 1 and Type 1P cement. These types are used for high-strength concrete designs with a minimal cement factor requirement (ready-mixed concrete), projects with tight completion schedules, pre-cast and pre-stressed concrete, and infrastructure projects such as roads, dams, bridges, railway structures, mega-structures, high-rise buildings, and condominiums.

In a report on the results of its preliminary investigation, DTI said the imposition of provisional measure is necessary to prevent further material injury to the domestic industry.

DTI said the total volume of alleged dumped imports was computed at 4.262 million metric tons (MT) or 55% of the total Philippine imports from July 2019 to December 2020. The volume of alleged dumped cement products satisfies the de minimis volume requirement of 3%. Under RA 8752, the volume of the allegedly dumped products from a particular country should normally be regarded as negligible if it accounts for less than 3% of the total imports.

Dumping margins for Type 1 cement ranged from US$1.02/metric ton (MT) to $10.53/MT or 2.69% to 31.87% of the export price. For Type 1P cement, dumping margins from 2019 to 2020 ranged from $1.16/MT to $12.79/MT or 3.80% to 29.20% of the export price.

Margins of dumping are above the de minimis requirement of 2% of export price.

Another factor that contributed to the material injury suffered by the domestic industry is price undercutting, which was determined at 23% in 2019 and 24% in 2020 (January-June).

Moreover, the market share of domestically produced cement decreased from 85% in 2017 to 78% in 2019, as dumped imports increased its share in the domestic market. DTI said the domestic industry suffered loss of market share; declining domestic sales, production, utilization rate, and employment; and increased cost of production and inventory.

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