RTC junks bid to halt DTI drive vs substandard GI sheets

GI sheet manufacturers lost their bid to get a temporary restraining order against the government crackdown on substandard construction materials such as galvanized iron sheets and rebars now proliferating in the local market.

The Department of Trade and Industry (DTI) and the Bureau of Product Standards are now free to go after erring manufacturers and hardware stores as the Manila Regional Trial Court junked yesterday for lack of merit the petition filed by Sonic Steel Corp., Tower Steel Corp., Richardson Steel Corp. and Group Steel Corp.

The petition sought to stop the DTI from conducting hearings against manufacturers caught producing substandard products and hardware stores caught selling these products.

Trade and Industry Secretary Manuel Roxas II said the crackdown would now resume and warned erring manufacturers and hardware stores against dealing in substandard products, saying they are unduly exposing the public to constant danger.

"Consumers should look for the PS mark when buying GI sheets to be sure that the product they are getting conforms to government-set standards," Roxas said. He also warned that manufacturers or hardwares caught violating mandatory product standards could face administrative fines of up to P300,000 and plant closure, as well as possible criminal cases.

Roxas said that laboratory tests conducted on sample GI sheets manufactured by Sonic Steel and Tower Steel showed that the products fell short of the mandatory standards.

The findings by the DTI’s Metal Institute for Research and Development prompted the department to conduct a hearing last week but the respondents preempted the hearings by applying for the TRO.

The DTI earlier reported that GI sheet producers that cheat on product standards were driving legitimate producers out of businesses while making over P80 million a month on windfall profits.

Although government is already mandated to shut down repeat violators, it has refrained from doing so for fear that this would cause a shortage in the domestic supply of GI sheets.

However, the DTI said substandard GI sheet were effectively displacing legitimate producers who are mostly licensees of the International Standards Organization and are, therefore, compelled to comply with stringent product standards.

The BPS is also authorized to impose penalties and even shut down repeat violators, but the source said there were basic weaknesses in the existing rules that no longer faze unscrupulous GI sheet producers. – Des Ferriols