Cement firms seek shield from imports

Local cement manufacturers are seeking protection under the new Safeguard Measures Act of 2000. The protection may come in the form of a general increase in the tariff on imported cement on a possible imposition of import quota.

Industry leaders said the anti-dumping case against Taiwan will soon be withdrawn from the Bureau of Import Services of the Department of Trade and Industry as the Philippine Cement Manufacturers Corp. (Philcemcor) filed a safeguard case last week following months of deliberation by local cement producers.

According to Thomas Clough, chief operating officer of Alsons Cement Corp., Philcemcor filed the case last week after deciding that the industry would benefit more from the Safeguard Measures Act which would address imports in general and not just those coming from Taiwan.

Unlike the Anti-Dumping Act where industries have to prove dumping of imported goods, the new law allows government to impose safeguard measures ranging from higher tariffs to quantitative import restrictions based only on volume of imports assuming that the industry could show that the surges caused injury to local manufacturers.

"At the time the industry filed the anti-dumping case, it was the only remedy available to us but it would have only addressed the imports coming from Taiwan," Clough explained. "Under the Safeguard Measures Act, we could resolve the whole issue of import surge altogether and get a more comprehensive protection."

Clough also said that while Taiwan dominates cement exports to the Philippines, there had also been significant increases in imports from other countries such as Indonesia.

As the region continues to suffer under the strains of overcapacity and lackluster economies, Clough said there would be continued increase in cement trading within Asia which could pose a threat to local cement producers.

Two remedies would be available to local cement producers. One is a provisional tariff increase effective while the Tariff Commission is deciding on the case. The second is the actual measure to be decided on by the commission, effective for four years.

The temporary relief could range from higher tariff or actual import volume restrictions which could be extended to 10 years at the end of the four-year period, depending on the Tariff Commission.