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The Department of Trade and Industry (DTI) will impose a temporary safeguard duty of ₱349 per metric ton (MT) on two varieties of cement imports to protect the local industry following the recommendation of the Tariff Commission (TC).
Trade Secretary Cristina Roque announced late Tuesday, Oct. 14, that the DTI will be adopting the TC’s recommendations to help level the playing field in the cement industry.
In its final report on the formal investigation into safeguard measures on cement imports, the TC recommended a safeguard duty of ₱14 for a 40-kilogram bag or ₱349 per MT of ordinary Portland cement type 1 and blended cement for a period of three years.
The TC initiated a probe following the DTI’s imposition of duties amounting to ₱400 per MT in February.
The DTI, later supported by the TC, found a causal link between the increased imports of cement products and the serious injury to the domestic industry.
In its report, the TC said the recommended level of safeguard duty is the difference between the weighted average store price of imported cement and the weighted average selling price of the local cement industry for 2024.
In adopting the commission’s recommendation, the DTI said the safeguard duty represents only around three to four percent of prevailing retail prices.
“This measure is intended to level the playing field between domestic manufacturers and importers and is not expected to be passed on to consumers, as the safeguard duty applies solely to imported cement,” said Roque.
Roque said that the excess cash bond paid by importers, or the difference between the provisional and final duty, will be refunded once the corresponding department issues an order.
As provided for under the Safeguard Measures Act, the government can impose safeguard measures to give injured domestic industries remedy and time to adjust to import competition.
The Cement Manufacturers Association of the Philippines Inc. (CeMAP) previously urged the DTI to impose a safeguard measure on cement imports to protect the industry “against unfair competition from other countries.”
CeMAP Executive Director Rey Baja said it is of “national interest” to ensure the industry remains viable.
Meanwhile, following the recent earthquakes that struck several parts of the country, the DTI emphasized the importance of maintaining an adequate and affordable supply of cement nationwide.
Roque said her agency will closely monitor the implementation and impact of the safeguard measure on cement prices to prevent any unwarranted price adjustments.
This monitoring, she said, would also ensure that the duties remain at levels necessary to address the serious injury suffered by the domestic industry.
“The DTI will regularly review the safeguard duty to adjust its scope and intensity in response to market conditions,” said Roque.
“The Department will actively regulate the effects of safeguard tariffs to maintain a balanced environment where both local manufacturers and cement importers can adapt, compete, and thrive, particularly during periods of calamities or supply disruptions,” she added.
