"The provisional tariff would be effective only for 200 days as mandated under the Safeguard Measures Act or until the Tariff Commission issues a ruling on the petition of local cement manufacturers for tariff protection against imported cement," Roxas said.
The DTI chief explained that the imposition of the provisional tariff is intended to help the local cement industry and its workers.
The DTI is hoping that local cement prices would eventually come down to P125 per bag from the current price of P145 per bag in Metro Manila.
Outside Metro Manila, Roxas said, the target price is P135 per bag. For government projects, government is aiming for a special price of P110 per bag.
The DTI has finally been able to take action against cheap imported cement following the issuance of a temporary restraining order (TRO) by the Court of Appeals against an earlier TRO issued by the Valenzuela Regional Trial Court which blocked the implementation of the Safeguard Measures Act. The Safeguard Measures Act allows the DTI and the Department of Agriculture to impose provisional measures to protect local industries from an import surge.
Based on the DTI’s findings, the local cement industry has been besieged by cheap imported cement.
He said that cement imports increased by 200 percent.
Figures from January to July this year, Roxas disclosed, showed that 1.6 million tons of imported cement came in which is more than the entire cement imports in the year 2000.
The influx of imported cement, Roxas added, ate up 21 percent of the local market.