DTI to impose safeguards on glass imports from Malaysia, India

The Department of Trade and Industry (DTI) has removed Malaysia and India from the list of countries exempted from the imposition of definitive safeguard measures on imported glass mirrors and float glass.

The removal of Malaysia and India from the exempted countries was done following an annual review to assess if the amount of imports from an exempted country remains less than three percent.

Following the annual review from January to June 2006, the DTI review showed that importation of clear float glass from India and Malaysia already accounted for 19.47 percent and 12.56 percent, respectively, of the total Philippine imports of said products for the six-month period.

The DTI had imposed definitive general safeguard measure on imported glass for three years starting in April 2004 to protect the local industry from unfair foreign competition.

The definitive safeguard duties imposed on glass products were: Figured glass, P2,655 per metric ton; glass mirrors (copper-based) P5,110 per MT; tinted float glass, P5,850 per MT; and clear float glass, P4,630 per MT.

The punitive duties were reduced by five percent for the second and third years of implementation.

The additional import duties were based on the price difference between the domestic net selling prices and the lowest landed cost of imports.

The DTI and the Tariff Commission had found evidence that the increased importation of glass products has injured the domestic industry.

Asahi Glass Philippines, the injured party, had applied for the imposition of safeguard measures against the importation of glass mirrors, figured glass and float glass.

Based on the AGP petition, cheap imports from China and other countries are flooding the market, hence injuring the local glass industry.