DTI imposes safeguard measure on imports of detergent raw material

The Department of Trade and Industry (DTI) has found that a surge in imports of Sodium Tripolyphosphates-Technical Grade (STPP-TG) has caused serious injury to the domestic industry.

STPP-TG in powdered or granular form is mainly used in the manufacture of detergent bars and powder.

The DTI’s findings showed that the surge in the importation of STPP-TG has caused a decline in the domestic industry’s market share, production, capacity utilization, productivity, sales and profitability.

In view of this, Trade Secretary Peter B. Favila issued an order to impose a provisional safeguard measure amounting to P14.15/kg. on all importations of STPP-TG from various countries, in the form of a cash bond for a period of 200 days from the date of issuance of the relevant Customs Memorandum Order.

The DTI order imposing the provisional safeguard measure is published in two major newspapers today, July 13.

The DTI will immediately forward the records of the case to the Tariff Commission, which will conduct its own public hearing and formal investigation.

The Commission’s findings will be used by DTI in deciding whether to impose a final safeguard measure on the said product.

"The provisional safeguard measure is intended to protect the local industry from incurring further damage by providing a temporary relief against the surge of imports," Favila said.

Favila explained that the safeguard measure has been set at a level sufficient to prevent the industry from sustaining further injury that would be difficult to repair unless a provisional measure is taken now.

"This action by the government signifies its commitment to extend the appropriate safety nets to prevent the demise of local industries facing intense competition from increased imports," Favila added.

Public interest, Favila added, "is best served by ensuring the continued existence of a viable domestic industry that can effectively compete with foreign suppliers and provide Filipino consumers with quality products at reasonable prices."

Considering that STPP-TG is one of the raw materials in the manufacture of detergent bars and powder, Undersecretary for Consumer Welfare and Trade Regulation Zenaida Cuison Maglaya assured that there would be no shortage of the said chemical in the market even if the provisional safeguard measure is imposed.

"The domestic manufacturer has sufficient capacity to supply the requirements of downstream industries," Maglaya said.

"Moreover, our studies have shown that the effect of the provisional measure on the cost of detergents would be negligible and will not substantially affect prices of detergents," Maglaya said.