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The Tariff Commission recommended non-extension of the imposition of safeguard measures on cement imports
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TC said imports did not seriously injure the domestic cement industry
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There was also no imminent threat of serious injury and significant overall impairment to the position of the domestic cement industry in the near future
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During its review, TC said the domestic cement industry maintained its market standing, increased capacities, stabilized manufacturing costs, and improved profitability
The Tariff Commission (TC) recommended non-extension of safeguard measures on cement imports, after investigations showed imports did not seriously injure the domestic cement industry.
TC said it found “no significant overall impairment in the position of the domestic cement industry that constituted serious injury” during its review period from 2019 to 2021.
The safeguard measure is expiring on October 22.
In a summary report on its formal investigation issued on October 6, the TC also said there is “no existence of an imminent threat of serious injury and significant overall impairment to the position of the domestic cement industry in the near future.”
The domestic cement industry, it said, has taken considerable effort to comply with its adjustment plans and “is thus making positive adjustment to import competition.”
During the review period, TC said the domestic cement industry maintained its market standing, increased capacities, stabilized manufacturing costs, and improved profitability.
In its final report dated October 5, TC said the domestic industry was profitable as its income from operations bounced back in 2021 to pre-pandemic levels of P13 billion and its average costs of production were stabilized from 2016 to 2021.
TC began its investigation in February this year after it received a petition referred by the Department of Trade and Industry (DTI) for the extension of safeguard measures against the import of ordinary Portland cement type 1 and blended cement type 1P from various countries.
The petition for extension was filed by the Cement Manufacturers Association of the Philippines, represented by four of its member-firms: CEMEX Holdings Philippines – APO Cement Corporation and Solid Cement Corporation; Holcim Cement Philippines; and Republic Cement & Building Materials, Inc.
DTI in January 2019 issued an order to impose provisional safeguard measures in the form of cash bond against imports of ordinary Portland cement type 1 and blended cement type 1P for 200 days after its moto proprio investigation found that increased imports of cement have caused serious injury to the Philippine cement industry.
DTI is mandated by Republic Act No. 8800 (the Safeguard Measures Act) to protect the domestic industry from serious injury caused by a surge in imports.
In August 2019, DTI issued Department Administrative Order (DAO) No. 19-13, s. 2019 for the imposition of a general safeguard measure against imports of cement from various countries for a period of three years, or from 2019 to 2022.
The imposition follows TC’s recommendation after its formal investigation found the existence of a direct causal relationship between increased imports of cement and the imminent threat of serious injury and significant overall impairment to the position of the domestic cement industry in the near future.
In October 2019, the Bureau of Customs issued Customs Memorandum Circular No. 239-2019, thus commencing the implementation of the definitive measure.
A year after implementation, DTI issued DAO No. 20-08 in October 2020 modifying upward the definitive safeguard duty for the second year, noting that the market share of locally-produced cement was displaced even with the imposition of a definitive safeguard duty which resulted in the domestic industry’s increased inventory, reduced capacity utilization, and decline in profitability. BOC in December 2020 issued Customs Memorandum Order No. 29-2020 for the imposition of the modified safeguard duty.
READ: PH enters final year of implementing cement safeguard duty
