Gov’t to raise tariff on some steel products

President Arroyo is expected to sign next week an Executive Order (EO) raising the tariff rate on hot-rolled coils and cold-rolled coils to seven percent while maintaining the current three percent Most Favored Nation (MFN) tariff rate on tinplates and zero percent Common Effective Preferential Tariff (CEPT) for tinplates.

The technical committee of the Tariff and Related Matters (TRM) approved yesterday the new rates which is expected to get final approval from the Cabinet-level TRM before being signed by President Arroyo next week.

According to government sources, the 7-3-0 formula is a "win-win" solution to the steel tariff issue.

The sources said the government would be protecting the newly rehabilitated National Steel Corp., now known as Global Steelworks International (GSII), which would provide much needed employment in Iligan, while also heeding the clamor of local tin can manufacturers not to raise the cost of tin plates which is used to make tincan for food products.

Global Steelworks president Sushant C. Das said that his company is not aware of any decision regarding steel tariff adjustments.

He stressed that any rumors or reports coming from unnamed sources are pure speculation and hence unfair to all parties concerned.

Meanwhile, the downstream steel industry players had argued that they would be adversely affected by a rise in tariff rates, especially since NSC/GSII still does not have the capacity to provide the needs of the local downstream industry players.

NSC had argued that even though it is temporarily closed, it is still considered a local manufacturer of steel products and would thus be affected by a lowering or removal of the existing tariff wall.