During a recent hearing by the House committee on economic affairs, the Philippine Cement Manufacturers Corp. (Philcemcor) and importers presented widely varying figures on the landed cost of imported cement.
Philcemcor claims the average landed cost of imported cement is only P58 per 40 kilogram bag and yet the stocks are sold at practically the same prices as local cement. At times, prices of imported cement are even higher than those of local cement.
Philcemcor cited a Department of Trade and Industry (DTI) report indicating that last November 2001, the selling price of imported cement was P145 per bag or P5 higher than the price of local cement.
In the same Congressional hearing, Southern Cross Cement Corp. (SCCC) disputed Philcemcor’s claim, saying the landed cost of imported cement can go as high as P98 per bag depending on the prevailing exchange rate.
SCCC presented its official records to Congress to back up its claim. SCCC told legislators that Philcemcor was showing undervalued import figures.
SCCC also revealed that contrary to claims of Philcemcor, there are other countries who do not impose tariff on cement imports.
SCCC cited Japan which does not impose any tariff on cement exports from South Korea, China, and Taiwan.
Those three countries, SCCC said, exported a total of 29 million bags to Japan last year.
Philippine cement makers, SCCC revealed, export locally produced cement at between P18 to P39 per bag.