Consumer group cites 'coopting' in new cement import rule

Aconsumer group has cited the new rules issued by the Department of Trade and Industry on cement importation, which it alleged to have cemented "abuse" of dominant position by cement manufacturers as it "coopted" with the regulator.

An additional affidavit by Laban Konsyumer Inc. President Atty. Victorio Mario Dimagiba urged the Philippine Competition Commission (PCC) cited DTI's Department Administrative Order 02-17 as the new evidence to the commission's ongoing full administrative investigation of the cement industry for possible violations of Articles 14 and 15 of the Philippine Competition Act.

"I respectfully submit new evidence in support of the ongoing probe to include in its ongoing probe the possible cementing of abuse of dominant position by the cement industry as now written in the rules of the regulator," said Dimagiba in an affidavit dated April 21, 2017.

DTI DAO 17-02 effectively created two set of rules for the importation of the same product. It repealed all provisions of existing DTI rules and regulations inconsistent with the present DAO.

"DTI DAO 17-02 exacerbates the abuse of dominant position of the cement industry and ensures that retail prices of imported cement costs at least R8 to 10 pesos higher than local cement," said Dimagiba.

The affidavit cited Paragraph 4 of the DAO which exempts importation by cement manufacturers with operating integrated cement plants in the Philippines from seeking Import Commodity Certificate (ICC) provided they use the brand name as authorized in the local market.

The privileges of the exemption on a per shipment and per bill of lading translates to a savings of average R10.00 a bag of cement for the importing local cement manufacturers, a savings not available to direct importers.

But the double product certification the direct importers will have to undergo makes the traders retail price at least php 10.00 per bag expensive.