Public hearing on imported cement tariff deferred

MANILA, Philippines — The Tariff Commission’s formal investigation on whether there is a need to impose a definitive safeguard duty on imported cement would take longer than initially expected as the public hearing scheduled next week is being pushed back to a later date. 

In a notice, Tariff Commission chairperson Marilou Mendoza said the public hearing scheduled from May 6 to 10 on the formal investigation on the imposition of safeguard measure against importations of cement from various countries, as indicated in the commission order issued on Feb.7 2019, is moved to a later date. 

She said the schedule of the public hearing is being changed “to give this commission time to complete its plant visits and data verification.” 

She said the new schedule of the public hearing would be announced at a later date. 

Last Feb. 4, the Tariff Commission started its formal investigation to determine if the provisional safeguard duty slapped by the Department of Trade and Industry (DTI) on cement imports should stay.

Under the DTI’s Department Administrative Order 19-02 issued last Jan.17, a provisional safeguard measure in the form of a cash bond amounting to P210 per metric ton was imposed on imported cement for a period of 200 days. 

The DTI imposed the provisional safeguard measure citing a surge in cement imports which hurt local industry players. 

Based on the DTI’s findings, cement imports went up to more than three million metric tons (MT) in 2017 from only 3,558 MT in 2013.

During the same period, the share of imports in the market climbed to 15 percent from just 0.02 percent. 

While the Tariff Commission’s formal investigation is being undertaken, local manufacturers are required to maintain the suggested retail price for cement. 

Laban Konsyumer Inc. president Victorio Mario Dimagiba said the group is of the view the Tariff Commission should complete the investigation within the prescribed period under the law, notwithstanding the postponement of the hearing. 

“Otherwise the Tariff Commission should dismiss the investigation motu propio,” he said. 

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

The safeguard measures can be applied when it is found imports have increased and caused harm to the local industry.