In the meantime, the government will agree to reduce the existing tariff on certain steel iron products with a provision that they would be increased when NSC reopens.
The government was able to successfully broker a debt restructuring agreement between the shareholders of NSC and its creditors, paving the way for the eventual reopening of NSC.
Following the debt restructuring agreement, the creditor banks will now be able to take over NSC and start entertaining offers from interested investors or operators.
The reopening of NSC is expected to take some time.
In the meantime, government has to comply with its trade commitments under the ASEAN Free Trade Area (AFTA) to lower tariffs on certain iron and steel products, some of which NSC also produces.
The Philippines had earlier excluded 16 iron and steel products from the reduction in tariff because these products would directly affect NSC.
The major products of NSC include billets which currently has a three-percent duty; cold rolled coils, seven percent; hot rolled coils, seven percent; and tin plates, zero duty.
However, various manufacturers of welding electrodes, G.I. wire, nails, screws, bolts and nuts have been clamoring for a reduction in the tariff on wire rods, from the current three percent to one percent.
Those seeking a reduction in the tariff on wire rods claim that carbon wire rods are not a product of NSC and are not locally produced.
However, government pointed out that wire rods may be converted to rebars through cutting. – Marianne Go