CA upholds punitive tariff on cement imports

The Court of Appeals, in a decision penned by CA Associate Justice Elva John S. Asuncion, has issued a writ of preliminary injuction against the lifting of the P20.60 per 40-kg. bag punitive tariff on imported cement, giving the local industry a reprieve from the influx of cheap imported cement.

The temporary tariff of P20.60 is supposed to be lifted tomorrow as this was 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.

The Safeguard Measures Act allows the DTI and the Department of Agriculture to impose provisional measures to protect local industries from an import surge.

The punitive tariff was imposed by the Department of Trade and Industry (DTI) following a complaint of dumping filed by local cement manufacturers.

According to the CA decision, the government will continue to collect the P20.60 punitive tariff on imported cement until the court has ruled on the merits of the petition filed before it by the Philippine Cement Manufacturers Corp. (Philcemcor)– the umbrella organization of local cement manufacturers.

Edcel C. Lagman, Philcemcor counsel, said "the CA ruling is a recognition that local industries are entitled to protective safety nets, like provisional and definitive imposition of tariff on imported products, which measures are integral components of the World Trade Organization."

Philcemcor has turned to the courts to seek protection from the influx of imported cement following the DTI’s decision to abide by the findings and recommendation of the Tariff Commission that the local cement industry has not been adversely affected by the entry of imported cement.