Statement on the Imposition of P10 per 40 kg bag Definitive General Safeguard Duty on Imported Cement from Various Countries

The Tariff Commission (TC) has determined that the domestic cement (Type 1 and Type1P)  is a “like product” to imported  cement (Type 1 and Type 1P) and that cement is being imported into  the Philippines in increased quantities, and established  the existence of a causal link between imminent threat of serious injury to the local cement industry and increased imports of cement, TC recommended the application of a definitive general safeguard measure at PhP297 per MT or PhP12 per 40kg bag on imported cement to prevent the occurrence of the threat of serious injury. TC further recommended that the definitive safeguard measure be applied for a period of three (3) years, starting from the date that the provisional measures took effect  in accordance with Rule 8.7 of the IRRs of RA No. 8800.

Relevant Provision:  Section 13 of RA 8800

“Adoption of Definitive Measures. – Upon its positive determination, the Commission shall recommend to the Secretary an appropriate definitive measure, in the form of: 

(a)     An increase in, or imposition of, any duty on the imported product;

(b)     A decrease in or the imposition of a tariff-rate quota (MAV) on the product; 

(c)     A modification or imposition of any quantitative restriction on the importation of the product into the Philippines; 

(d)     One or more appropriate adjustment measures, including the provision of trade adjustment assistance; 

(e)     Any combination of actions described in subparagraphs (a) to (d).

Rule 5.2 , IRR of RA 8800 – Conditions for the Application of  General Safeguard Measures

The Secretary when establishing that the application of a safeguard measure will be in the public interest shall take into consideration the following factors; among others: 

     (i) whether the imposition of the provisional measure will result in political and economic crisis: and
     (ii) the extent to which such imposition will cause a shortage of a product under consideration in the domestic market”. 

DTI has taken into account public interest in the decision whether to impose safeguard measures and has considered other factors that will assist the  local industry and  will benefit the consumers  and end users.

Likewise, the safeguard level aims to minimize the impact to prices for buyers and users while addressing the industry injury issue, while still encouraging local manufacturers to continuously pursue efficiencies to be more globally competitive.

DTI is mandated by RA 8800 (The Safeguard Measures Act) to protect domestic industry from serious injury caused by a surge in imports. While DTI is also mandated to protect consumers, there is a need to balance this taking into account other sectors such as investors and  industry which provide  employment to Filipinos. There is also a need to moderate imports to balance trade. If local manufacturers can adequately supply domestic requirements, they need to be provided a level playing field to enable them to compete with imports. This will allow expansion of the country’s manufacturing base and generate more jobs for Filipinos. Further, users of cement retain their option to choose between the local and imported cement since imports will still be allowed.  The imposition of a safeguard measure is not expected to cause a shortage of cement in the domestic market considering that the cement manufacturers have sufficient capacity to meet domestic demand.  For these reasons, DTI has determined that it is in the public interest to impose the definitive safeguard measure.

Accordingly, the DTI has reviewed the Commission’s findings and recommendations and has established that the imposition of the definitive general safeguard measure shall be in the public interest. 

We are deciding on the imposition of definitive safeguard duty of P250 per MT or P10 per 40kg bag for the first year of the implementation to encourage and challenge the local cement industries to be globally competitive.  

Pursuant to Section 18 of RA 8800, the amount of safeguard duty shall be reduced for the second and third years of the implementation.  Thus, it is recommended that the amount of the safeguard duty be reduced to P9.00 per 40kg bag for the second year and to P8.00 per 40kg bag for the third year.  A yearly review shall be conducted to determine the appropriateness of the safeguard duty.

DTI, DENR Align Policies for Stricter Environmental Standards and Modern Technologies in Steel Industry

QUEZON CITY – The Department of Trade and Industry (DTI) and Department of Environment and Natural Resources (DENR) are pushing for stricter environmental standards and more modern and cleaner technology in steelmaking industry to ensure manufacturers produce quality and safer steel products as well as encourage industries to be environment-friendly.

During a meeting between DTI Secretary Ramon Lopez and DENR Secretary Roy Cimatu last Monday, the agencies agreed to review existing environmental standards and production technologies used in steelmaking, considering reports that several used induction furnace facilities have been set up, which can be more pollutive and produce inconsistent quality and non-conforming steel products.

“What we need in the country are modern, environmentally friendly technologies that will consistently produce quality products,” said Sec. Lopez.

China, which has the top three steelmakers in the list of the top six largest in the world, has phased out and eradicated induction furnaces in 2017 because of its pollutive process and inconsistent quality products manufactured.

“We do not want those used pollutive induction furnaces to transfer to our country,” the trade chief added.

DTI is intensifying its campaign for safer and higher quality steel products; thus, it is reviewing its policies and regulations on this matter.

“This collaboration with DENR will help us in promoting industrial capacity building with the use of advance technology in steel making while protecting our environment. This is also a testament that as we drive economic growth, we encourage responsible businesses in the country,” said Sec. Lopez.

The DTI and the DENR are set to form a Technical Working Group (TWG) to align its policies and strategies in ensuring steelmaking facilities are compliant with environmental standards and product quality. The TWG will likewise review the compliance of steel producers with an online monitoring system linked to the DENR.

According to the Trade Secretary, the move is also in pursuit of the United Nations Sustainable Development Goal No. 12: Sustainable Consumption and Production, which is actively pursued in the ASEAN region.

Sec. Cimatu expressed DENR’s commitment in the collaboration. He assured that the Environmental Management (EMB) as well as the Mines and Geosciences Bureaus (MGB) will be in coordination with the DTI-Consumer Protection Group and the Board of Investments (BOI) in this agenda.

Sec. Lopez said that both agencies are studying proposed regulations on the use of secondhand equipment or machineries in the steel industry.  Moreover, a study on the possibility of making the approval for all environmental compliance certificates (ECC) for critical heavy industries like steelmaking and cement be on a national level.  This is to ensure more comprehensive and faster review of ECC applications, as well as enjoining a more intensive environment and production monitoring of steelmaking facilities.

The TWG shall also review the proposed increase in penalties imposed on manufacturers violating environmental standards or the terms and conditions in the ECC.

As for the DTI-Bureau of Philippine Standards (BPS), Sec. Lopez committed that there will be a review on the Philippine Standard (PS) license certification scheme procedures for steel products, possibly including steel billets, and more intensive monitoring at the retail trade level.

Present during the meeting were DENR Undersecretary Rodolfo Garcia, MGB Assistant Director Danilo Uykieng, Metallurgical Technology Division Chief Engr. Juancho Calvez, and EMB Environmental Impact Assessment and Management Division Chief Engr. Esperanza Sajul, DTI Undersecretaries Ceferino Rodolfo and Ruth Castelo, DTI-BPS Officer-in-Charge Engr. Neil Catajay, BOI Governor Angelica Cayas and Director Evariste Cagatan.