DTI reaffirms dismissal of anti-dumping bid of LMG

The Department of Trade and Industry (DTI) reaffirmed yesterday its dismissal of the anti-dumping application filed by LMG Chemical’s Corp.

After evaluation of the issue raised by LMG in its Motion for Reconsideration and based on the information provided by the Philippine Economic Zone Authority (PEZA) on the actual domestic sales of the Philippine Associated Smelting and Refining Corp. (PASAR), the DTI found no merit to reverse its earlier decision dismissing the anti-dumping case against the importation of sulfuric acid from Japan.

The DTI further ruled that LMG accounts for less than 50 percent of the total domestic production which is not sufficient to warrant a legal standing.

The DTI explained that Republic Act 8752 or the Anti-Dumping Act provides that a petition "must be supported by those domestic producers whose collective output constitutes more than 50 percent of the local production of the like product produced by that portion of the industry expressing either support for, or opposition to the application."

The DTI further elaborated that LMG’s application cannot be considered to have been made "by or on behalf of the domestic industry" unless they obtain the necessary support from PASAR.

PASAR is registered with PEZA as an export-producer enterprise.

PASAR is authorized by PEZA to sell locally 3,800 MT of sulfuric acid per month or 45,600 MT annually, subject to payment of the corresponding customs taxes and duties, prior to withdrawal of the items for domestic sale from the zone.

According to PEZA, PASAR has maintained its local sales within the limits prescribed under Executive Order of 226 otherwise known as the Omnibus Investments Code of 1987 or EO 226.

EO 226 entitles PASAR as a Filipino exporter to a maximum local sales allowance of 50 percent of its total sales. From 2000 to 2003, PEZA reported that PASAR’s domestic sales ranged from six percent to 49 percent of its total sales volume.

PEZA likewise reported that the actual domestic sales of PASAR represented 4.4 percent to 37 percent of PASAR’s rated capacity.

Thus, the DTI concluded that PASAT is legally allowed to sell to the domestic market 50 percent of its total sales as a privilege of being a registered Filipino exporter under PEZA.