DTI to adopt TC’s safeguard duty on imported cement

The Department of Trade and Industry will be adopting the Tariff Commission's recommendation on the imposition of a safeguard duty on imported cement in a bid to level the playing field between local cement makers and importers.

In a statement, the DTI said it will adopt the TC’s recommendation of imposing a safeguard duty of P14.00 per 40-kilogram bag or P349 per metric ton of Ordinary Portland Cement Type 1 and Blended Cement for a period of three years. 

The Trade Department said the TC’s recommended safeguard duty rate represents only around 3% to 4% of prevailing retail prices. 

To recall, Trade Secretary Cristina Roque, pursuant to the Safeguard Measures Act, earlier issued a notice directing a preliminary investigation covering cement importation for the years 2019 to 2024.

Among the factors that triggered the investigation is the increase in cement imports — 10% in 2020, 17% in 2021, and 5% in 2023. The share of imports also increased from 30% in 2019, 47% in 2023, and 51% in January to June 2024.

With the TC’s recommendation, the DTI said a corresponding Department Order will be issued. 

Roque, for her part, said the imposition of the safeguard duty will be subjected to dynamic monitoring and review to ensure that prices remain stable and supply stays sufficient to cover demand at any given time. 

The Trade chief said 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.”

Nonetheless, Roque said the DTI remains mindful of the recent earthquakes that have severely affected several areas across the country, underscoring the critical need for cement in the rehabilitation and reconstruction of impacted communities. 

"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,” she said.

The DTI chief said that the safeguard measure is “temporary, designed to restore fair competition and ensure that consumer welfare is maintained.” —AOL, GMA Integrated News