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The Department of Trade and Industry is imposing a safeguard duty on imported cement for three years
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The tariff rate will be P14 per 40-kilogram (kg) bag or P349 per metric ton of ordinary Portland cement Type 1 and blended cement
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DTI said the Tariff Commission’s recommended safeguard duty rate represents only around 3-4% of prevailing retail prices
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The excess cash bond paid by importers or the difference between the provisional and final duty assessed will be refunded once the corresponding DTI department order is issued
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The 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
The Department of Trade and Industry (DTI) is imposing a safeguard duty on imported cement for a period of three years.
The 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, DTI said in a statement.
The tariff rate will be P14 per 40-kilogram (kg) bag or P349 per metric ton of ordinary Portland cement Type 1 and blended cement (Association of Southeast Asian Nations Harmonized Tariff Nomenclature or AHTN 2022 Subheading Nos. 2523.29.90 and 2523.90.00).
The imposition of the safeguard duty will be subject to monitoring and review to ensure prices remain stable and supply stays sufficient to cover demand at any given time.
DTI said the Tariff Commission’s (TC) recommended safeguard duty rate represents only around 3-4% of prevailing retail prices.
DTI likewise clarified that the excess cash bond paid by importers or the difference between the provisional and final duty assessed will be refunded once the corresponding DTI department order is issued.
Trade Secretary Cristina Roque noted the critical need for cement in the rehabilitation and reconstruction of communities affected by the recent series of strong earthquakes in different parts of the country.
“The DTI will regularly review the safeguard duty to adjust its scope and intensity in response to market conditions. 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,” Roque said.
DTI emphasized that the safeguard measure is temporary, designed to restore fair competition and ensure that consumer welfare is maintained.
Prior to TC’s recommendation, DTI was already imposing a provisional safeguard measure on imports of cement from various countries after its initial investigation found increased imports caused substantial injury to the domestic industry.
READ: DTI approves provisional safeguard measure on cement imports
The Bureau of Customs has been implementing this year a provisional safeguard measure in the form of a cash bond amounting to P400 per metric ton (mt) or P16 per 40 kg bag on ordinary Portland cement and blended cement, pursuant to DTI Department Administrative Order No. 25-01, which approved the imposition of provisional safeguard measure.
This was pursuant to Republic Act (RA) No. 8800, or the Safeguards Measures Act, which authorizes the imposition of such measure “in critical circumstances where a delay would cause damage which would be difficult to repair, and pursuant to a preliminary determination that increased imports are the substantial cause of injury to the domestic industry.”
