DTI assures level playing field for all cement importers

Trade and Industry Secretary Ramon M. Lopez has assured of a level playing field in the revised inspection rules on cement importation as pure traders and cement manufacturers are scrambling to meet the robust demand for cement following a boom in the construction sector and the government’s “Build, Build, Build” program.

Lopez made this assurance as the DTI is finalizing an amended Department Administrative Order that will govern the safety standards of all imported cement.

“We have to balance that the new rules will apply to all imports. One thing is sure that the product is compliant to standards for the benefit of consumers,” he said.

The DTI is still weighing options – pre-shipment, post shipment or post shipment only – in securing that only cement that passed quality standards can enter into the country while both manufacturers and traders are lobbying to also secure their respective interests.

One option is to allow pre-shipment inspection from the origin country, but there will still be verification upon arrival of the product although the product will no longer be held at the ports but will be allowed immediate release and distribution.

“If you passed the compressive strength of 28 days then upon arrival there will still be verification test but there will be no more holding of the product because you already passed the test, but if your certification is only for 3-7 days not 28 days a verification will also be conducted and the product cannot be released until the complete results are done,” he said. This is the process that pure traders are pushing for.

However, local cement manufacturers, which are also importing cement to augment shortfall in their local production, are batting for post cement inspection only saying it would be easier to fake a standards certification overseas.

To address this issue, the pure traders side has recommended to hire a credible third party certifying body to ensure the integrity of the certification. Traders are opposed to post shipment inspection because it will cost them additional expenses for warehousing since it will take days or even a month before tests are completed.

Shortfall in local cement production will continue in the next three to four years until such time that new capacities are added with the operation of expan – sion and new plants. In the meantime, imports from China and other ASEAN countries should boost robust demand.

Napoleon Co, president and owner of Cebu Oversea Hardware Co., Inc. (COHACO) – one of the top five cement importers in the country, said the local cement plants, which are largely owned by multinational firms, already ran out of capacities having reached 24 million tons of production since last year..

According to Co, the shortfall in local production will linger in the next three to four years as construction of new plants and expanded capacities of existing plants have long gestation period.