TC recommends safeguard duties on newsprint

MANILA, Philippines - The Department of Trade and Industry (DTI) still needs to issue an order covering safeguard measures on imported newsprint after the Tariff Commission (TC) issued a recommendation to impose duties on such imports.

TC chairman Edgardo Abon told reporters Monday the commission’s recommendation to impose duties on imported newsprint would for be up for consideration of the DTI.

“Our recommendation goes to DTI. They will consider our recommendation,” he said.

In a report dated February 23, the TC recommended the imposition of a specific duty of P2,470 per metric ton of newsprint as the form of the definitive safeguard measure.

The duty would be effective for three years starting this year until 2018.

The recommendation was made as the TC found that the domestic newsprint industry has suffered and continues to have “significant impairment in terms of loss of market share, declining domestic production and domestic sales, mounting losses in profitability, and reduction in employment and labor productivity.”

The TC noted that while there are other factors, increased imports of newsprint causing the serious injury to the domestic industry.

A formal investigation was conducted by the TC on the matter after the DTI endorsed the case to the commission in October last year.

The DTI conducted an investigation on the matter following a petition filed by the domestic newsprint industry represented by dominant player Trust International Paper Corp., for safeguard measures as it claimed that increased imports have threatened local players.

Abon said that while the DTI still needs to look into the TC’s recommendation, “they cannot overturn the decision.”

What the DTI could do, Abon said, is to determine the level of duties to be imposed.

Locally produced newsprint, made mainly from recycled paper, is used for newspapers, books and school pads.

Under Republic Act 8800 or the Safeguard Measures Act, a country may impose safeguard measures or higher duties on imported goods to provide relief to local players.

The safeguard measures may be applied when it is found that there is an increase in imports of a certain commodity and such has hurt the local industry.