THE Department of Trade and Industry (DTI) said it suspended the safeguard duty on imports of high-density polyethylene (HDPE) pellets and granules in response to industry clamor as well as the indefinite shutdown of the Philippines’ sole HDPE producer.
In Department Administrative Order (DAO) No. 25-08, the DTI said that it is suspending the definitive general safeguard measure on imports of products under ASEAN Harmonized Tariff Nomenclature 2017 Code 3901.20.00 from various countries.
JG Summit Holdings, Inc. announced on Jan. 30 the indefinite commercial shutdown of its petrochemical business, JG Summit Olefins Corp. (JGSOC), due to “unfavorable global market conditions.”
The DTI added that the Philippine Plastics Industry Association, Inc. has requested the suspension of the safeguard duty on imported HDPE in a letter to DTI on Feb. 14.
“The request is being made in light of JGSOC’s indefinite commercial shutdown and in order to stabilize the local supply of plastic resins,” the DTI said.
On March 14, JGSOC confirmed its indefinite commercial shutdown in a reply to the DTI and noted that it will continue selling HDPE products from its existing inventory until the third quarter.
In May, JG Summit said JGSOC will remain shut down for at least two years “due to ongoing challenges in the global market.”
“In view thereof, and in order to avert any supply disruption of HDPE products, the DTI hereby orders the suspension of the imposition of the definitive general safeguard measure on importations of HDPE from various countries,” it said.
“The suspension shall be effective for the remaining period of the imposition or until such time that JGSOC resumes its normal operations, whichever comes earlier,” it added.
According to the DTI, the suspension of the safeguard duty will take effect upon the issuance of an order and circular by the Bureau of Customs (BoC).
The DTI issued DAO No. 22-13 on Sept. 30, 2022, which imposed a definitive general safeguard measure on imports of HDPE pellets and granules.
On Jan. 20, 2023, the BoC issued a Customs Memorandum Order which implemented the DTI DAO 22-13 for three years. — Justine Irish D. Tabile