DTI nixes safeguard measure vs detergent ingredient

Local detergent manufacturers scored a major victory after the Department of Trade and Industry (DTI) rejected an application for definitive safeguard measures against the importation of sodium tripolyphosphates (STPP), an ingredient which accounts for a large part of the cost of production of local detergent manufacturers.

The department set aside the recommendation of the Tariff Commission (TC) for the imposition of said measures, saying that the law, specifically Republic Act 8800 or the Safeguard Measures Act, requires that the DTI secretary must establish that the application of such safeguard measures is in the public interest, notwithstanding the TC’s recommendation.

"Considering that STPP is an input to detergents which is an essential commodity used by consumers, it is extremely sentitive to any price fluctuation. Thus, the application of a definitive safeguard measure will not be in the public interest," according to Trade Secretary Peter Favila.

Beginning July last year, the DTI ordered the imposition of a 200-day provisional safeguard measure on STPP imports pending investigation by the Tariff Commission on the propriety to make this measure definitive or permanent. The TC recommended that the measure be made permanent, a recommendation which the DTI set aside.

In explaining DTI’s decision, Favila noted that inspite of the imposition of the provisional safeguard measure, there was no significant improvement in the sales performance and production level of STPP by CAWC because principal users and importers of STPP were still able to source their requirements from other countries which were exempt from the measure. Others imported 4A Zeolite, a substitute to STPP.

Thus, the DTI, in its ruling, pointed out that the imposition of a definitive safeguard measure at this time will not redound to public interest and will instead have more adverse effects on the downstream industries resulting in loss of employment to more people and potential loss of investment opportunities. "Thus, the application for general safeguard measures against the importation of STPP technical grade from various countries is dismissed for public interest," it said.