BOC starts collection of P20.60 tariff on imported cement

The Bureau of Customs (BOC) started collecting last Monday the P20.60 per bag tariff imposed by the Department of Trade and Industry (DTI) on imported cement to provide relief to the local cement industry, which has been ailing from unfair competition from abroad.

Customs Commissiner Titus B. Villanueva issued Customs Memorandum Order (CMO) 38-2001 yesterday directing all BOC district collectors to carry out the DTI order. The tariff will be in the form of a cash bond.

"It is hereby directed that all importations from all countries of gray Portland cement of all types, including Portland cement that contains pozzolan, slag or other additives, whether in bulk or bags ... shall be imposed, in addition to taxes and duties and other charges, a cash bond amounting to P20.60 per 40-kilogram bag or its equiavalent in bulk," the CMD stated.

For its part, the Fair Trade Alliance (FTA) expressed confidence that the BOC order would speed up the recovery of the cement industry, and that the bureau would be able to effectively enforce the DTI-approved tariff. "Given the commissioner’s excellent track record in terms of revenue collection, we are sure that the bureau will implement this crucial safeguard measure diligently," said Angelito Mendoza, executive council for labor of the FTA, a broad coalition of labor, business, and agriculture groups and other non-government organizations advocating fair trade in the Philippines.

Earlier, Villanueva was commended by no less than President Arroyo herself for exceeding the BOC’s collection target for January to May this year despite the lower volume of imports during the said period. He was also responsible for intensifying the bureau’s over-all efforts to crack down on technical and outright smuggling.

The FTA also commended Villanueva for the BOC’s swift response to the Department of Finance’s instructions pertaining to the collection of the P20.60 cement tariff. As stated in the CMO, Villanueva officially received the DOF’s directive only last Wednesday, Dec. 6, but was able to issue the corresponding BOC order by Monday, Dec. 10.

"This is yet another indication of government agencies working together for the benefit of the Philippine economy in general and the welfare of Filipino workers in particular," Mendoza said.

The local cement industry had been reeling from the deluge of cement imports which, because of their unfair price advantage due to excess capabilities in the Southeast Asian region, have cornered about one-third of the local market from only 1.8 percent in 1998. This had resulted in huge losses fro the industry and the displacement of thousands of cement workers.