Removal of import tariff on cement bucked

The removal of the tariff on imported cement will encourage dumping, the Cement Manufacturers Association of the Philippines (CEMAP) said.

“I believe that the government should continue to be consistent in identifying cement as a strategic product which means that tariffs which are currently at five percent for the world and three percent for ASEAN should be maintained,” Ernesto Ordoñez, CEMAP president told The Star in an interview.

Ordoñez said the government should not decrease the tariff because it is already considered one of the lowest in the region.

“Why should we lower our tariff when we are already lowest,” he said.

The tariff for cement importation in Malaysia is 50 percent while it is 40 percent in Vietnam. “This is because they (Malaysia and Vietnam) believe in giving support to their strategic industries,” Ordoñez, who is also the ASEAN president of the Cement Manufacturers, said.

He said they have given their official statement to the Department of Trade and Industry (DTI) and the Tariff Commission (TC) as to why tariff for cement is essential.

Ordoñez said they have reported four incidents of dumping of cheap cement. He said things will grow worse if the protection is removed completely.

Last week, Trade and Industry Secretary Peter B. Favila said the government was considering removing the tariff on cement to make it more affordable to the public.

By lowering to zero the tariff on cement, the secretary said the consumers will be able to buy imported cement in the country at a more affordable price.

The tariff rate for Portland cement stands at five percent for MFN (most favored nation) and three percent for CEPT (common effective preferential treatment).