NGO urges DTI to act on 'irregular' cement imports

MANILA, Philippines - A non-government organization advocating product safety for consumer welfare urged the Department of Trade and Industry (DTI) yesterday to take appropriate action on the reported anomalous importation of cheap cement from China, saying it not only undermines Philippine laws but also poses serious threat to public safety.

Lawyer Rafael de la Torre, chief advocate of the Center for Organizational Studies (COSA), was reacting to reports that another huge shipment of China-made cement has arrived, and is now being moved to the project site without prior government approval and pertinent documents.

Citing intelligence reports, De la Torre said this importation of Portland cement traced to the China National Construction and Agricultural Machinery Import and Export Corp. (CAMC), was undervalued at $30 per metric ton (MT).

The lawyer recalled that the CAMC imported a cheaper type of cement (“compound” cement) last year that they valued at $47/MT. The shipment arrived in the country on July 28, 2010.

The selling price of cement this first week of February in Rizhao China where the cement came from is selling in the local market at $68/MT as posted in cementchina.net.

“Viewed in the light of the Filipino and international trading laws this is a clear case of dumping. The importations were executed at predatory prices to the prejudice of local cement manufacturers,” De la Torre stressed.

He pointed out that Taiwan was filing a dumping case against China because the shipment in question was priced at $36/MT, much higher than the alleged CAMC’s purchase price of $30/MT. The $30/MT is less than half the published local selling price of $68/MT in Rizhao. In addition, it is at least 83 percent lower than the FOB prices of China cement sold to other countries. Dela Torre said he has actual invoices of these as proof.

He also revealed that the CAMC importation was being moved from the Customs bonded warehouse without the required importation clearance certificate (ICC) contrary to law.

They also said the first CAMC importation was still to be retested while the second shipment is undergoing its initial quality tests.