Safeguard duty on imported ceramic tiles cut

The Trade department has slashed the safeguard duty on imported ceramic tiles by roughly 3 percent, in line with rules that require annual cuts on such tariffs. Under a department order, the duty will stand at P1.80 per kilogram on the ninth year of the safeguard order's imposition, versus the P1.86/kilo duty that was in effect for 2009. The order, signed by Trade Secretary Peter B. Favila last Dec. 3, will take effect 15 days after publication or upon the issuance of a Bureau of Customs order. Safeguard duties were first imposed on ceramic tiles in 2002 to close the price gap between cheap imports and locally made tiles. The Trade department noted that the price of locally made products in the first half of 2009 was already 8 percent lower than the average cost of imports with safeguard duty. During the period, China remained the largest source of imported tiles, accounting for at least 77 percent of the total, it said. Indonesian imports trailed behind with a 6-8 percent share. The order clarified that imports from Japan and the European Union remained exempted from safeguard duties since tiles from these countries "cannot be considered like products or directly competitive products." Sought for comment, Ceramic Tile Manufacturers' Association President Edison Co Seteng said in a telephone interview on Sunday that while safeguards do help, industry players have also taken steps to become more competitive. Co Seteng said Mariwasa Siam Ceramics, Inc., which he heads, has been investing in equipment and sourcing power from biomass to save on energy costs. — Jessica Anne D. Hermosa, BusinessWorld