PH safeguard duties on steel angle bars extended until 2019

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Steel-angle-barThe Bureau of Customs (BOC) will collect additional safeguard duties on imports of steel angle bars, following a four-year extension of the measure granted by the Department of Trade and Industry (DTI).

Under Customs Memorandum Order (CMO) No. 26-2015, dated August 10, and in keeping with the July 16 order of DTI, all imports of steel angle bars with Harmonized System code 7216.2100 and 7216.5010 from all countries will be imposed the following additional safeguard duty until 2019: P3,345/metric ton (MT) for the first year; P3,178/MT for the second year; P3,019/MT for the third year; and P2,868/MT for the fourth year.

“Moreover, covered shipments entered into/withdrawn from warehouses in the Philippines for consumption shall, in addition to the regular Customs duties due thereon, be subjected to the aforestated safeguard duty, on a per shipment to shipment basis,” the CMO said.

Published on August 21, the CMO will take effect 15 days after its publication.

BOC listed 200 developing countries and separate customs territories excluded from the imposition of the definitive safeguard measure under Republic Act 8800, or The Safeguard Measures Act signed in 2000. Based on Rule 13.1.d of the law’s implementing rules and regulations, “A general safeguard measure shall not be applied to a product originating from a developing country if its share to total Philippine imports of the said product is less than three percent (3%): Provided, however, that developing countries with less than three percent (3%) share collectively account for not more than nine percent (9%) of the total Philippine imports of the product concerned.”

Trade Secretary Gregory Domingo earlier said DTI extended the measure after reviewing findings of the Tariff Commission (TC). It was also in response to a petition filed by the Steel Angles, Shapes and Section Manufacturers Association of the Philippines Inc.

According to the TC, “The recommended extension will allow time for the domestic steel angle bar industry to fully implement its adjustment plan to positively adjust to import competition.”

It said the local industry has “undertaken serious efforts to comply with its adjustment plan and there is evidence that the industry is making positive adjustment to import competition. The positive impact of the efficiency measures undertaken by the domestic industry to lower production cost translated to reduced prices.”

In the last two years, the TC noted there has also been a “significant increase” in import volume of the commodity.

“Even with the safeguard measure in place, the threat of increased imports remains. Discontinuance of the imposition of the safeguard measure will likely lead to the recurrence of imports in increased quantities that would cause serious injury to the domestic industry. With the excess production capacities in China and other Asian countries, the Philippines will continue to be a target export market,” the Commission said.

Ending the “safeguard duty will make it difficult for the domestic industry to price its products at a competitive level.”

Finally, TC said that “Without the safeguard measure, the positive gains made by the domestic industry will be negated as the industry still needs time to fully put in place its commitments in the adjustment plan and effectively face import competition.”