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THE Department of Trade and Industry (DTI) dismissed the petition to the extension of general safeguard measures on imported cement. The DTI also shut the door on any appeal for such saying in an order that the safeguard measure imposed until 2022 would no longer be extended.
“In view thereof, the petition for the extension of general safeguard measure on importations of Ordinary Portland Cement Type 1 and Blended Cement Type 1P is hereby dismissed,” read the Department Administrative Order (DAO) 22-14 document that was published on the agency’s website last Wednesday.
The petitioners included the Cement Manufacturers Association of the Philippines Inc., Republic Cement Corp. and Holcim Philippines Inc.
“Accordingly, the definitive safeguard measure imposed for a period of three years commencing on October 22, 2019, shall expire on October 22, 2022,” the DAO noted.
It was last October 5 that the trade department said it received the Tariff Commission’s formal investigation report on the petition for extension of general safeguard measures on importation from various countries of Ordinary Portland Cement Type 1 and Blended Cement Type 1P.
The tariff body, pursuant to Republic Act (RA) 8800 (Safeguard Measures Act), recommended that the imposition of the definitive general safeguard measure on imported cement shall no longer be extended.
Profitable industry
THE Commission said its decision was based on its findings after a review of the measures from 2019 to 2021. The Commission noted that during the review period, it found that the domestic industry maintained its market standing, increased mill capacities, stabilized manufacturing costs and improved profitability.
“The domestic industry was profitable as its income from operations bounced back in 2021 to pre-pandemic levels of P13 billion,” the tariff body’s report read. “Return on Sales was stable at 13 percent, attributable to successfully executed cost-cutting and productivity-enhancing industry measures.”
With this, the tariff body said, there was “no significant overall impairment” in the position of the domestic cement industry that constituted “serious injury.”
In accordance with RA 8800, safeguard measures could be initiated by domestic producers, the Trade Secretary or the House or Senate Committee on Trade and Commerce as long as certain elements are established in the investigation.
These elements include the presence of directly competitive products and that there must be recent, sudden, sharp and significant increase in imports. The law also said there must be serious threat or injury (i.e., impacted overall performance of the local industry) and the imported product directly causes serious injury to the domestic industry.
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