Republic Glass wins dumping case versus Malaysia, Indonesia

Republic Asahi Glass Corp. has won its dumping case against Indonesian and Malaysian exporters of clear float glass, prompting the Department of Trade and Industry (DTI) to impose dumping duties on these products entering the Philippine market.

In separate orders issued on Dec. 13, 2000, the DTI ordered the imposition of dumping duties on clear float glass exported by Indonesian firms Muliaglass, Tensindo, Tunggal Majuasri and Abdi Rakyat Bakti as well as two Malaysian exporters, Malaysian Sheet Glass Berhad and NSG Hongkong.

The dumping suit covered the period between 1996 and 1998 during which Republic Asahi said these companies dumped clear float glass into the Philippines causing material injury to the domestic glass industry.

The volume of dumped imports from Indonesia was 40.76 percent of total Philippine imports during the period, satisfying the minimum requirement of three percent.

On the other hand, dumped imports from Malaysia accounted for 8.54 percent of total Philippine imports, also enough to warrant the hearing of a dumping case against Malaysian exporters.

The DTI said injury to Republic Asahi was reflected in the presence of price undercutting and depressions as well as the actual decline in output sales, market share, capacity utilization and profits.

The DTI said the dumping margin went up to as high as 333 percent in the case of Indonesia and to as high as 90 percent in the case of Malaysia, indicating that clear float glass these companies exported to the Philippines were radically cheaper than the clear float glass sold in both countries of origin.

Dumping margin is defined as the price difference between the domestic selling price of clear figured glass when sold in the markets in Indonesia and Malaysia and its export price to the Philippines.

When a product is exported and sold at price levels lower than the domestic price in the country of origin, it is considered dumping and subject to anti-dumping sanctions under the World Trade Organization (WTO).

Aside from the Indonesian and Malaysian firms, the DTI had also initiated preliminary investigation into charges of dumping filed by Republic Asahi against China.

In its complaint, Republic Asahi accused Shanghai Ta-Yuan Glass Co. Ltd. and Shanghai Cen Eagle International Trading Co. Ltd. of exporting glass into the Philippines at dumped prices.

The Philippine importers were identified as Malabon Mirror Factory and Aluminum Industry, Isla Industrial Sales, Philtech Glass, Vetro Aluminum Philippines and Comglasco.

Republic Asahi is the only float glass producer in the Philippines and has a dominant 85-percent share of the entire domestic float glass market of approximately 120,000 metric tons per year.