THE Tariff Commission (TC) said it has recommended the imposition of a P349 per metric ton safeguard duty on cement imports.
In a Sept. 30 report, the commission said it determined that domestic cement is a ‘like product’ and directly competes with imported cement, which has been shipped in increased quantities.
“Having established the existence of a causal link between serious injury to the local cement industry and increased imports of subject cement products, the commission hereby recommends the application of the appropriate definitive general safeguard measure, in the form of a duty, on importation of cement,” it said.
It said the recommended safeguard measure on imports of ordinary Portland cement type 1 and blended cement seeks “to provide temporary relief and give the local industry a reasonable period to adjust to increased import competition.”
The commission proposed a P349 per metric ton duty or P14 per 40-kilogram bag, which was based on the difference between the weighted average of ex-importers’ store price and the weighted average of domestic ex-plant selling prices for 2024.
According to the commission, the safeguard measure will have a greater impact on lower-priced cement imports, as the equivalent ad valorem rate will depend on the value of the shipment.
However, it said that the measure exempts cement imports from developing countries with de minimis volumes, which include Indonesia, Iran, Pakistan, Singapore, Taiwan, and Thailand.
Meanwhile, the determination of whether the new exporting countries will be covered by the de minimis rule will fall to the Department of Trade and Industry.
Since the proposed duty is only temporary, the commission said it expects the measure to be progressively liberalized, allowing market competition to revert to a normal level in due time. — Justine Irish D. Tabile