Cement manufacturers are urging the government to impose a safeguard duty of P600 per metric ton on cement imports to help the domestic industry survive amid competition from imports.
Cement Manufacturers Association of the Philippines Inc. (CeMAP) executive director Renato Baja said the group has requested the Department of Trade and Industry (DTI) to impose a safeguard measure of P600 per metric ton on cement
being brought in from overseas.
‘In our prayer (to the DTI), the P600 considered the injury (caused by imports) on the industry,’ he said.
He said the amount is what is considered a ‘fair price’ for domestic manufacturers, based on the comparison of the landed cost of imported cement and the factory gate price of locally produced cement.
‘What we want is to have a level playing field in terms of pricing,’ he said.
Earlier, the CeMAP said that cement suppliers from other countries, such as Vietnam, receive subsidies, which enable them to sell at lower prices.
As demand for cement is anticipated to slow down slightly with some government projects being put on hold amid the flood control controversy, Baja said a safeguard measure is now very much needed by the industry.
CeMAP’s proposed safeguard duty is higher than the provisional safeguard measure imposed by the DTI, amounting to P400 per metric ton, and the Tariff Commission (TC)’s recommended definitive safeguard duty of P349 per metric ton of imported Portland Cement Type 1 and blended cement.
While the CeMAP is proposing a higher safeguard duty, the group welcomes the TC’s recommendation to impose a safeguard measure on cement imports.
‘We’re happy that the TC recognized the injury to the domestic industry. But we will be more than happy if they can grant our prayer,’ he said.
He said a ban on cement imports would also be favorable for the industry.
According to the CeMAP, cement imports have declined by 19 percent following the DTI’s imposition of the provisional safeguard duty.
Trade Secretary Cristina Roque said the DTI is currently reviewing the TC’s recommendation and expects to issue a decision before Oct. 14.
Earlier this year, the DTI imposed a provisional safeguard duty on cement imports after finding a link between increased imports of the building material and injury to the local cement industry.
Under the Safeguard Measures Act, the government can use safeguard measures, such as tariffs, to provide relief to the domestic industry from the harm caused by a surge in imports.