No safeguard duty for imported float glass

MANILA, Philippines — The Tariff Commission (TC) sees no need to impose a safeguard measure or duty on float glass imports as its investigation showed that imports of these products are unlikely to increase in the near future and hurt the domestic industry.

“Considering the negative determination of the elements of serious injury and threat thereof, the Commission hereby terminates its formal investigation and recommends that no definitive general safeguard measure be imposed on importations of reflective, tinted and clear float glass,” TC said in its final report on the case issued last week.

TC conducted an investigation following a request from the Department of Trade and Industry (DTI) which imposed a provisional safeguard measure in the form of cash bond of P2,552 per metric ton (MT) for clear float glass and P2,835 per MT for tinted and reflective float glass for a period of 200 days.

DTI’s action was based on a probe it conducted after it received a petition filed by the country’s sole float glass maker Pioneer Float Glass Manufacturing Inc. to impose a safeguard measure or duty on float glass.

Under Republic Act 8800 or the Safeguard Measures Act, a safeguard measure or duty can be provided by the government as relief to domestic industries suffering from serious injury due to increased imports.

Based on TC’s investigation, volume of imports of clear float glass increased at an average annual rate of 190 percent from 2013 to 2018, while domestic production recorded an average decline of one percent.

As for tinted float glass, imports grew at a faster rate of 107 percent compared to the 10 percent average annual growth rate of domestic production from 2013 to 2018.

Meanwhile, the share of reflective float glass imports to domestic production rose steadily and reached its highest value at the tail end of the period of investigation.

While clear, tinted and reflective float glass were being imported in the country in increased quantities and there was deterioration in market shares, profitability and inventory levels, TC said there was no significant overall impairment in the position of the domestic industry and no serious injury during the period of investigation.

TC also said it is unlikely for float glass imports to continue to increase in the near future and hurt the domestic industry given the expected slowdown in economic activity due to the coronavirus disease 2019 or COVID-19 pandemic.

TC’s recommendation against imposing a safeguard measure on float glass imports is expected to benefit the domestic industry in terms of being encouraged to step up through innovation, as well as productivity enhancing measures.

The move is also seen beneficial for consumers in terms of having choices and being spared from price increases from the imposition of a safeguard measure.