DTI to study imposition of safeguard measures on cement imports

MANILA, Philippines — The Department of Trade and Industry (DTI) is set to study the imposition of a definitive safeguard measure on cement imports following the recommendation of the Tariff Commission (TC).

“DTI will review the recommendation of the TC,” Trade Secretary Cristina Roque told The STAR.

The DTI will be making the final decision on whether a definitive safeguard measure would be imposed on cement imports.

In its final report on the formal probe on safeguard measures on cement imports, the TC recommended the imposition of a safeguard duty amounting to P349 per metric ton or P14 for a 40-kilogram bag of imported Portland cement Type 1 and blended cement for a period of three years.

The TC made the recommendation after finding a causal link between the serious injury to the local cement industry and increased imports of cement products.

The recommended safeguard duty is the difference between the weighted average importers’ price of imported cement and the weighted average factory gate price of local cement for 2024.

“Since it addresses the extent of price undercutting by cement imports based on the latest available data, the commission deems that this level of safeguard duty is sufficient to alleviate the serious injury to the domestic industry and facilitate its adjustment to the adverse effects of increasing cement imports,” the TC said.

The TC said the definitive safeguard duty would not apply to imports from developing countries with de minimis import volumes such as Indonesia, Iran, Pakistan, Singapore, Taiwan and Thailand.

Back in February, the DTI imposed a provisional safeguard duty of P400 per metric ton or P16 for a 40-kilogram bag of imported cement after it found a link between increased cement imports and injury to the domestic industry.

Under the Safeguard Measures Act, the government may put in place safeguard measures to protect domestic industries from increased imports that cause or threaten to cause serious injury.

Cement Manufacturers Association of the Philippines Inc. executive director Rey Baja earlier said that the industry needs the safeguard measure for local cement manufacturing to remain viable and to protect local jobs.

Cement manufacturing contributes at least one percent to the country’s gross domestic product. It also provides around 130,000 direct and indirect jobs.