-
The Philippines is imposing safeguard duty on cement from China and Indonesia after monitoring an increase in imports from the two Asian countries
-
The imposition was announced in Trade and Industry Department Order No. 26-03 dated May 20, and will take effect upon the Bureau of Customs’ issuance of related memo
-
The share of cement imports from China increased to 11% of the total in 2025 and 23% in January to March 2026, while the share of imports from Indonesia were at 6% and 8% in those two periods
-
This meant they have exceeded the less than 3% de minimis threshold, which led to their removal from the list of developing countries excluded from the imposition of the safeguard measures on cement imports
-
The safeguard duty for the first year of application is P14 per 40 kilogram bag or P349 per metric ton
The Philippines will be imposing safeguard duty on cement imports from China and Indonesia after monitoring an increase in imports from the two Asian countries.
The imposition was announced in Trade and Industry Department Order (DAO) No. 26-03 dated May 20, and will take effect upon the Bureau of Customs’ (BOC) issuance of related memo.
Based on data, out of the 6.02 million metric tons (mt) of cement imports in 2025, and 1.29 mt from January to March 2026, the share of cement imports from China increased to 11% last year and to 23% in the first quarter this year, while the share of imports from Indonesia were at 6% and 8%.
This meant they have exceeded the less than 3% de minimis threshold, which led to their removal from the list of developing countries excluded from the imposition of the safeguard measures on cement imports under DAO No. 25-15.
Under DAO No. 25-15, a three-year definitive safeguard measure is mandated on importations of ordinary Portland cement Type I (Association of Southeast Asian Nations Harmonized Tariff Nomenclature or AHTN 2022 Subheading No. 2523.29.90) and blended cement (AHTN 2022 Subheading No. 2523.90.00). The policy exempts cement products originating from developing countries whose share of the total import is less than 3%.
READ: DTI to impose safeguard duty on imported cement for 3 years
With the removal of China and Indonesia from the exemption, DTI DAO No. 26-03 orders that imports of cement from China and Indonesia will be imposed with the safeguard duty for the first year of application at P14 per 40 kilogram (kg) bag or P349 per metric ton (MT).
The Department of Trade and Industry earlier said the imposition of a safeguard duty on cement imports 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 BOC last February issued Customs Memorandum Circular No. 42-2026 to implement DAO 15-2025. Another memo dated March 12 said the safeguard duty under DAO No. 25-15 will be implemented in BOC’s system starting March 14, 2026.
READ: BOC starts collecting safeguard duty for imported cement
Under DAO No. 25-15, imports originating from developing countries listed in its Annex A with de minimis import volume will not be subject to the definitive general safeguard measure.
Exports of new exporting countries, except the developing countries covered by the de minimis rule, will automatically be levied with the definitive safeguard duty.
Moreover, importers of ordinary Portland cement type I and blended cement originating from a country that is exempt from the safeguard duty should submit a Certificate of Country of Origin issued by the authorized agency/office in the source country of manufacture, subject to affixation of “Apostille” to the document or authenticated by the Philippine Embassy/Consulate General, as applicable.
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.
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.
BOC last year also implemented the provisional safeguard measure in the form of a cash bond amounting to P400 per mt or P16 per 40 kg bag on ordinary Portland cement and blended cement, pursuant to DTI DAO No. 25-01, which approved the imposition of provisional safeguard measure.
This was pursuant to Republic Act 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.”— Roumina Pablo