DTI nixes safeguard measure on ceramic floor, wall tile imports

MANILA, Philippines — The Department of Trade and Industry (DTI) is going with the recommendation of the Tariff Commission (TC) not to impose a definitive safeguard measure on ceramic floor and wall tile imports.

Trade Secretary Ramon Lopez said he has been informed of the TC’s recommendation on the ceramic floor and wall tiles safeguard measure case.

Asked if the DTI would reverse the TC’s recommendation, he said the DTI would not do so.

In its summary report on the investigation of the case issued on Dec.18 signed by TC chairperson Marilou Mendoza, commissioner Ernesto Albano and newly appointed commissioner Marissa Maricosa Paderon, the body said there is no need to have a definitive safeguard measure on ceramic floor and wall tile imports.

This, as the TC found there was no increase in imports of ceramic floor and wall tiles both in absolute terms and relative to domestic production during the period of investigation.

Based on TC’s findings, ceramic floor and wall tile imports only increased in 2014 and stabilized thereafter as it showed a declining trend starting 2015.

Having established there was no surge in imports of ceramic floor and wall tiles, the TC said there was no serious injury or threat to the local industry to warrant the imposition of safeguard measures.

“Considering that ceramic floor and wall tiles were not imported in increased quantities (whether absolute or relative to domestic production) during the period of investigation, the Commission hereby terminates its formal investigation and recommends that no definitive general safeguard measure be imposed on importations of ceramic floor and wall tiles,” the TC said.

The TC conducted an investigation on the case as the DTI imposed a provisional safeguard measure in the form of a cash bond amounting to P3 per kilogram on ceramic floor and wall tile imports earlier this year.

DTI imposed a provisional safeguard measure as its preliminary probe showed an increase in imports from 2013 to 2016.

DTI’s probe was conducted following a petition from Mariwasa Siam Ceramics Inc., representing the ceramic tile industry, which claimed imports have increased and contributed to the serious injury of local players.

The government is allowed under Republic Act 8800 or the Safeguard Measures Act to impose safeguard measures or duties on goods when imports of such cause threat or injury to local players.