DTI set to place provisional safeguard measures on imported tiles

THE Department of Trade and Industry Regional Office III (DTI) is set to impose provisional safeguard measures on the importation of ceramic tiles in view of the significant amount of imported ceramic tiles in the Philippine market in the past five years.

It was reported that in 2014 alone, there was a 2,170% surge in the supply of imported ceramic floor and wall tiles in the country.

Secretary Ramon M. Lopez signed Administrative Order No. 19-06 series of 2019 on May 7, 2019 to place safeguard measures on the local tiles manufacturing industry against the glut of supply of imported tiles which may affect the viability of the local tiles sector. It was reported that market share of local tiles suddenly decreased from 96% in 2013 to 15% in 2017 and 2018. On the other hand, share of imported ceramic wall and floor tiles grew from 4% in 2013 to 87% in 2016.

Under the new DTI Administrative Order, a P3 bond per kilogram of tiles is imposed as a provisional safeguard for a period of 200 days from the day a Customs Memorandum Order is issued or 15 days after the publication of the DTI Administrative Order, whichever comes first. After the said period, the Tariff Commission shall decide whether appropriate duties will further be imposed. Imported tiles that will be covered by the said Order are those with products codes:

AHTN 6907.2123, 2124, 2193, 2194, 2213, 2214, 2293, 2294, 2313, 2314, 2393, 2394, 4092. The Order also lists the countries of origin that are exempted from the provisional bond.

Republic Act No. 8800 or the Safeguard Measures Act provides that should there be serious injury to the domestic industry by the flow of imported products; the DTI Secretary may impose safeguard measures such as provisional bonds on imported materials to protect local industry players.

– Press Release