Tariff Commission proposes higher safeguard duty on cement

The Tariff Commission (TC) has recommended the imposition of higher safeguard duty on cement to enable the domestic industry to compete with imports.

Trade Secretary Ramon Lopez said the Department of Trade and Industry (DTI) has received the full report of the TC which recommended a safeguard duty of P297 per metric ton (MT) or P12 per 40-kilogram (kg) bag of cement.

TC’s proposed safeguard duty is higher than the provisional safeguard duty of P210 per MT or P8.40 per 40-kg bag imposed by the DTI and in effect for 200 days or until Sept.10.

“But we welcome their findings, after a series of public consultations, that there was injury to the industry, and that the safeguard duty should be P297 per MT or P12 per 40-kilo bag,” Lopez said.

TC’s proposal was made following public hearings conducted for the motu proprio initiated by the DTI to look at whether increased cement imports have caused serious injury to the domestic industry.

Lopez said the DTI would review TC’s proposed safeguard duty on cement.

“The DTI secretary will issue the final determination of the safeguard measure,” TC director Ma. Lourdes Saluta said.

Republic Act (RA) 8800 or the Safeguard Measures Act provides that government may impose safeguard measures or higher duties on goods when increased imports of such cause harm to the local industry.

Philippine Cement Importers Association Inc. president Napoleon Co said the recommendation to continue to impose safeguard duty at a higher rate does not take into account other costs of importers such as local charges for unloading, as well as costs when transporting to warehouses.

He said importers would continue to sell cement if they would make profit, but also noted that cement prices may go up as the higher cost is passed on to consumers.

For its part, consumer advocacy group Laban Konsyumer Inc. (LKI) said there is a need for DTI to monitor retail prices.

“There should be clear and regular price monitoring report of retail prices. If necessary DTI should now implement an SRP (suggested retail price) in cement when the lower priced local cement is not prevailing in the retail market,” LKI said.

Lopez said the DTI would also study if price caps would have to be imposed on cement.