DTI backs anti-dumping duties on Viet cement at TC’S behest

THE Department of Trade and Industry (DTI) has agreed with the Tariff Commission’s recommendation to impose anti-dumping duties for five years on imported cement from Vietnam.

The DTI said, as it endorsed TC’S recommendation, that “definitive anti-dumping duties shall be imposed for a period of five [5] years on imports of Ordinary Portland Cement Type 1 and Blended Cement Type 1P originating from Vietnam in accordance with Annex A.”

On October 11, the Trade department said it received the TC’S final report on the formal investigation on the application for imposition of definitive anti-dumping duty against importation of ordinary Portland cement type 1 and blended cement type 1P from Vietnam.

In accordance with Republic Act 8752 or the Anti-dumping Act of 1999, its implementing rules and regulations (IRR) and the World Trade Organization Anti-dumping Agreement, the tariff body said the production of ordinary Portland cement type 1 and blended cement type 1P by four applicantcompanies and two cement manufacturers support the application accounted for 91 percent of total domestic production or eight cement manufacturers of subject articles in 2020.

This, TC noted, satisfies the domestic industry requirement.

The Tariff body also noted that locally manufactured ordinary Portland cement type 1 is a “like product” to Portland cement type 1 imported from Vietnam.

“Both have similar material composition and production process, fall under the same tariff classification, conform to the chemical and physical requirements of PNS 07:2018, are used for similar applications, and have similar distribution channels,” the TC decision read.

According to the Tariff Commission (TC)’S decision in October, while period of investigation (POI) from 2017 to 2021 shows that domestic industry is not “materially injured” by dumped Ordinary Portland cement Type 1 and Blended Cement Type 1P from Vietnam, the existence of a threat of material injury to the domestic industry is “imminent” in the near future.

This, the Tariff body noted, may be indicated by the “significant rate of increase of dumped imports into the Philippines capturing substantial market share; presence of price undercutting; price depression and price suppression during the POI.”

The TC’S findings also noted that the existence of threat of material injury can be pointed to the “substantial” available production capacities of Vietnam that can accommodate increasing exports to the Philippines, its top export market. The Tariff body added that the “openness” of the Philippine cement market to the signs of imminent threat to the domestic industry.

Hence, the tariff body has ordered the imposition of anti-dumping duties on imports of Ordinary Portland cement Type 1 and Blended Cement Type 1P, originating and exported from Vietnam, for a period of five years.