THE Department of Trade and Industry’s (DTI) preliminary safeguard measures investigation on cement imports from Vietnam is necessary to keep the domestic cement industry from incurring undue injury, the Federation of Philippine Industries (FPI) said.
“FPI sees this action as a necessary response to the pressures and potential harm to the local industry posed by the surge of imported cement,” the FPI said in a statement on Wednesday.
“FPI recognizes the DTI’s proactive approach as an essential step toward protecting domestic manufacturers and ensuring a level playing field for Filipino businesses,” it added.
The DTI launched a preliminary safeguard measures investigation on imports of Vietnam cement classified under AHTN Codes 2523.29.90 and 2523.90.00.
In its preliminary report, the DTI said cement imports are projected to increase 4.96% year on year to 7.36 million metric tons (MT) this year.
Cement imports grew 10.34% in 2020 and 17.2% in 2021, then dropped 2.89% in 2022. They rose 4.74% in 2023.
Based on the initial findings, the DTI said that the increased imports have caused serious injury to the domestic industry, resulting in declining market share, reduced production and sales, diminished profitability, and weaker prices.
“By initiating this safeguards investigation, Trade Secretary Cristina A. Roque demonstrates the government’s commitment to the welfare of local industries, which provide employment and economic benefits to the country,” FPI Chairman Jesus L. Arranza said.
“The organization remains dedicated to working alongside the government to promote fair competition, job creation, and the long-term sustainability of Philippine industries,” he added.
In a department order dated Dec. 16, 2022, the DTI imposed anti-dumping duties on ordinary Portland cement type 1 and blended cement type 1P imports from Vietnam for five years.
This was later updated through a department order dated Feb. 14, 2023, and implemented in March 2023 after the Bureau of Customs posted Customs Memorandum Order 05-2023.
The order imposed a definitive anti-dumping duty on imports from Vietnam ranging from 2.33% to 23.33% depending on the company. — Justine Irish D. Tabile
