In its petition with the Tariff Commission, the FGI argued that the tariff on CRC should be reduced to zero since it is not produced locally in sufficient quantity and quality.
FGI pointed out that Global Steelworks International Inc. (GSII) has not yet proven that it has attained commercial operation status.
In fact, the FGI revealed, GSII has canceled orders booked by local galvanizers.
It was pointed out that domestic galvanizers using continuous hot-dipped galvanizing process with line speed of at least 50 meters per minute are encountering quality problems when using GSII’s CRC.
GSII’s CRC, with it outdated cold reducing process, the FGI complained, cannot meet the required quality specifications needed by the galvanizers using continuous hot-dipped galvanizing process with line speed of at least 50 meters per minute.
GSII’s output, the FGI said, is only suited for batch-type galvanizing process. FGI further argued that government has already granted zero tariff to at least one company - Steel Corporation of the Philippines-which has resulted in unfair competition.