DTI okays lower safeguard tariff for testliner boards

MANILA, Philippines - The Department of Trade and Industry (DTI) has approved reduced safeguard duties on imported testliner boards as the local industry shows determination to compete.

Testliner boards are the basic material, usually made of recycled paper, used to produce corrugated boxes for the packaging of consumer products.

Trade Secretary Gregory Domingo has approved the reduced duties on imported testliner boards at P1,274.90 per metric ton for the period of April to June 12, 2012, and P1,211.15 per metric ton from June 13, 2012 to June 14, 2013.

The safeguard measure, initially issued in July 2011, aims to help the domestic industry adjust to import competition. Based on the Tariff Commission’s recommendation, a duty of P1,342.00 per metric ton was imposed during the first year of implementation.

The 2011 order on safeguards on testliner boards states that the definitive safeguard measure will be imposed for three years and will be liberalized on the second and third year of implementation after an annual review.

As provided in the Safeguards Act (RA 8800) and the World Trade Organization (WTO), the institution of safeguard measures are permitted in cases of import surge of like or directly competitive import products that threaten the domestic industry.

Trade Undersecretary for Industry Development and Trade Policy Adrian Cristobal Jr. said the government is committed to liberalize the economy but at the same time help the local industries to become competitive.

He said that since the implementation of the safeguard measure on imported testliner boards, domestic sales increased by 21 percent in 2011. Capacity utilization rate of manufacturing facilities rose by 13 percent and consequently, domestic production also increased by 13 percent last year.

 “The domestic industry appears determined to compete, and has undertaken serious efforts to modernize and adjust,” said Cristobal.

During the implementation of the measure, the Tariff Commission monitors the adjustment plans of the industry.