TC delays hearings on petrochem safeguard measures

MANILA, Philippines — The Tariff Commission (TC) is moving to a later date the public hearing to determine if safeguard measures should be imposed on imports of high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) pellets and granules. The hearing was initially set for this week.

The TC said the public hearing scheduled today (Dec.6) until Dec.10, “is moved to a later date to allow the submission of required information by interested parties and to give this Commission additional time to complete its data verification.”

A new schedule for the public hearing will be announced.

The Safeguard Measures Act allows the government to provide relief to the domestic industry hurt by a surge in imports through the imposition of safeguard measures or higher duties on products brought in from overseas.

Earlier this year, the Department of Trade and Industry (DTI) recommended the conduct of a formal probe by the TC to see if definitive safeguard measures on imports of HDPE and LLDPE is needed.

The DTI said its preliminary investigation showed a causal link between increased imports of HDPE and LLDPE and serious injury to the domestic industry.

A preliminary investigation was conducted by the DTI following a petition from JG Summit Petrochemical Corp. (JGSPC) for safeguard measures on HDPE and LLDPE imports.

JGSPC claimed increased HDPE and LLDPE imports are hurting the domestic industry.

HDPE is a type of polyethylene resin used for grocery bags and trash bags, as well as beverage caps for mineral water, juice and tea.

LLDPE, meanwhile, is used for heavy duty sacks, agricultural films, shopping bags and ice bags.

Based on the DTI’s preliminary findings, the country’s HDPE imports, which reached 62,061 metric tons (MT) in 2015 increased to 78,305 MT in 2016, then dropped to 76,469 MT in 2017, rose to 84,270 MT in 2018, and grew further to 107,530 in 2019.

DTI also found that the country’s LLDPE imports climbed from 79,764 MT in 2015 to 83,758 MT in 2016, dipped to 79,631 MT in 2017, increased to 110,421 MT in 2018, and rose to 120,543 MT in 2019.

As imports increased, the local industry saw a decline in their sales, production, utilization rate, profitability and employment.