Roxas orders refund of cement tariff

The Department of Trade and Industry (DTI) has issued an order for the refund of the cash bond collected from cement importers in the form of provisional tariff under the Safeguard Measures Law.

Trade and Industry Secretary Manuel Roxas II said, the cement importers can get their refunds from the Bureau of Customs which has been doing the collections.

However, Roxas said he is not sure whether the government will continue collecting the provisional tariff for the remainder of the 200 days that the DTI had originally imposed.

The Safeguard Measures Law, unfortunately, is not clear about the 200-day period.

The government was able to collect about P78 million since the provisional tariff was imposed in November last year.

Roxas said he is abiding by the findings of the Tariff Commission even if he does not agree with it.

Cement importers have been clamoring for the refund of their cash bond following the release of the Tariff Commission’s findings. However, they do not know how to go about getting their refund.

The cement importers are also apprehensive over Roxas’ statements that he would find another route to protect the local cement industry.

In fact, Roxas will bring up the matter in the Cabinet-level Trade and Related Matters (TRM) committee which can rule on increasing or lowering tariffs on imported items.

Roxas had discussed the possibility of raising the existing tariff rate on imported cement, a move that will fall outside the scope of the Safeguard Measures Law.

For its part, the cement industry has asked the government tohold on to the amount it has collected from importers, pending a formal and final decision by the Department of Trade and Industry (DTI).

Edcel C. Lagman, spokesman of the Philippine Cement Manufacturers Corp. (Philcemcor), said these revenues represent government’s rightful share in the importers’ "inordinate profits of around P80 per bag," given that they bring in their cement at as low as P58 per bag but sell the same for as high as P145 per bag to consumers.

"The consumers were never benefited by imports, so let the government get their share instead. A profit of about P80 per bag is scandalous. We are not talking of free trade here but of illegal and unfair trade practices," he said.

Philcemcor issued its call in response to a threat from former senator Juan Ponce Enrile that Trade Secretary Mar Roxas faces a suit in the Ombudsman if he does not order the refund. Enrile’s law office has been the retained counsel of one of the importers.