Cement importers buck DTI safeguards

Local cement importers, who are opposing the Department of Trade and Industry’s (DTI) decision to impose a definitive safeguard measure on imported cement, are studying the possibility of elevating their case to the Supreme Court (SC).

According to Napoleon Co, speaking on behalf of local cement importers, there is no need to impose definitive safeguard measures at this time when cement prices are very low.

"The drop in cement prices was not due to the temporary safeguard but due to normal market forces," Co said.

Demand for cement drops during the rainy season and rises during the summer months when the weather favors construction activity.

"Because of the low prevailing cement prices, most importers have stopped importing cement," Co explained.

Local cement importers experienced a setback following the decision of the Court of Appeals that the DTI secretary has the power to overturn the decision of the Tariff Commission.

The Tariff Commission had supported the position of local cement importers that there is no need for safeguard measures against imported cement.

The DTI, on the other hand, sided with local cement manufacturers on the need for safeguard measures.

The CA ruled earlier that the imposition of the P20.60 provisional tariff should only be imposed for a period of 200 days.

The CA, however, was not clear on whether the additional tariff of P20.60 which was collected after the 200-day period should be refunded back to the cement importers.

"Local cement importers are also studying how to get back the cash bond that they had to put up as a result of the imposition of the provisional safeguard measures," Co said.

Show comments