Safeguard duty to be imposed on ceramic tile imports

The Department of Trade and Industry (DTI) will now impose safeguard duties on imported ceramic tiles coming from Korea, Vietnam, Thailand and India.

A safeguard duty of P5.40 per kilogram (kg) will be slapped on imported ceramic tiles from the four countries for the first year beginning Jan. 9, 2002 up to January 2003.

The duty would be reduced to P4.30 per kg for the second year beginning Jan. 10, 2003 up to Jan. 10, 2004.

Subsequently, the duty drops to P3.50 per kg for the third year beginning Jan. 11, 2004 up to January 10, 2005.

Trade and Industry Secretary Manuel Roxas II had actually signed last month the department order (DO) imposing the new duties.

The DO amends a previous order which imposes general safeguard measures on imported glazed and unglazed ceramic floor and wall tiles.

The decision to impose safeguard duties on imported ceramic tiles was based on the due process and evaluation conducted by the DTI’s Bureau of Import Services (BIS) which found the four countries exceeding the threshold level of share to total imports of ceramic tiles.

Ceramic tile imports from developing countries were previously exempted under the "developing country rule."

The DTI, however, decided to conduct an assessment of the volume of imports from developing countries upon the request of the Ceramic Tile Manufacturers Association.

The assessment conducted by the BIS from January 2002 to May 2003 showed that the four countries have exceeded the threshold level of three-percent share of total imports of ceramic tiles.

Under Republic Act 8800, also known as the Safeguard Measures Act, the four countries are no longer eligible for the exemption granted under the developing country rule and the World Trade Organization program on safeguards.

A certificate of country of origin would also be required to be submitted for all importation of ceramic floor and wall tiles in order to determine whether the importation is excluded from the imposition of said duty.