BOC slaps provisional safeguard duty on ceramic product imports

MANILA, Philippines — The Bureau of Customs (BOC) has imposed a provisional safeguard duty on imported ceramic floors and wall tiles to protect the local industry and producers, who have experienced losses due to the surge in ceramic importation in recent years.

Pursuant to Customs Memorandum Order 28-2019, issued by Customs Commissioner Rey Leonardo Guerrero on June 17, imported ceramic floors and tiles be levied a provisional duty of P3 per kilogram in the form of cash bonds.

The BOC said the provisional safeguard duty shall be imposed for a period of 200 days and shall be applied to specific tariff headings enumerated in the CMO.

This is in line with the Department of Trade and Industry (DTI) Administrative Order 19-06, series of 2019, which triggers the implementation of Section 8 of Republic Act 8800 or the Safeguard Measures Act, amid a surge in ceramic imports.

The law provides the imposition of provisional safeguard duty in critical circumstances where increased imports are determined to be causing serious industry to the domestic industry.

According to the BOC, the DTI has determined that the domestic ceramic floor and wall tiles industry suffered loss in revenue due to the influx of similar products from overseas.

DTI findings showed that the volume of imports of ceramic floor and wall tiles in 2017 was higher by 2,170 percent compared to the volume in 2014.

As a result, the DTI said the market share of domestically produced products declined to 15 percent in 2017 and 2018 from 96 percent in 2013, while the share of the imported brands grew to 87 percent in 2016 from four percent in 2013.

“The determined loss in market share lead to revenue losses for local enterprises, prompting the imposition of a provisional safeguard duty on imported tiles,” the BOC said.

Furthermore, the DTI said earnings of local ceramic manufacturers before interest and tax have exhibited a downtrend from 2014 to 2018.

For 2019, the BOC is targeting to collect P677 billion, 14 percent higher than last year’s actual collection of P593.1 billion.

As of end-May, the bureau has already collected P251.7 billion, 9.8 percent higher than the P229.3 billion recorded in the same period in 2018.

For May alone, revenue grew by 10.3 percent to P58.2 billion from P52.7 billion posted in the same month last year.