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The Department of Trade and Industry has ordered the imposition of a provisional safeguard duty on imports of corrugating medium
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The measure will be in a form of cash bond amounting to P3,438 per metric ton of imported corrugating medium for a period of 200 days from the issuance of a relevant Bureau of Customs order/circular
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A formal investigation will be conducted by the Tariff Commission to determine whether there is a need to impose a definitive safeguard measure on such imports
The Department of Trade and Industry (DTI) is imposing a provisional safeguard duty on imports of corrugating medium pending investigation on the need for a definitive safeguard measure.
According to DTI Department Administrative Order No. 25-11 adopted August 1, a cash bond amounting to P3,438 per metric ton will be imposed for a period of 200 days from the issuance of a relevant Bureau of Customs order.
The order covers corrugating medium classified under Association of Southeast Asian Nations Harmonized Tariff Nomenclature Codes 4805.19.10, 4805.19.90, and 4805.12.00 from various countries.
Corrugating medium is the fluted portion of the corrugated board placed in the middle of two liner boards which provide stacking strength and impact protection. Locally produced corrugating medium are made from 100% recycled paper and are converted into corrugated boxes which protects products from possible damage during shipment and storage.
DTI noted the imposition of the provisional safeguard measure is temporary and is not expected to cause a shortage of corrugating medium in the domestic market, considering local manufacturers have sufficient capacity to meet domestic demand.
Imports originating from developing countries listed in DAO No. 25-11 will be exempted from the provisional safeguard measure but will require a Certificate of Origin, subject to affixation of Apostille to the document or authentication by the Philippine embassy/consulate general, as applicable.
Case records will also be transmitted to the Tariff Commission for the conduct of a formal investigation to determine whether or not there is a need to impose a definitive safeguard measure.
The decision comes after DTI, in its preliminary investigation, established the existence of a “causal link between the increased imports of the products under consideration and serious injury to the domestic industry.”
It added that the “increased volume of imports, both in absolute terms and relative to domestic production, was found to be the substantial cause of the over-all impairment in the operations of the local industry.”
The preliminary investigation stems from the applications of safeguard measures by two members—supported by other members—of The Pulp and Paper Manufacturers Association of the Philippines that alleged the increased imports of corrugating material contributed significantly to serious injury suffered by the local industry.
The preliminary investigation conducted by DTI is pursuant to Republic Act No. 8800, or the Safeguards Measures Act, which states that the trade secretary may initiate a preliminary safeguard investigation if there is evidence that increased imports of the product under consideration are a substantial cause of, or are threatening to substantially cause, serious injury to the domestic industry.
