DTI junks plea vs safeguard duty on LLDPE

MANILA, Philippines — The Department of Trade and Industry (DTI) has formally dismissed the petition to impose a safeguard measure or duty on imported linear low-density polyethylene (LLDPE) pellets and granules.

In Department Administrative Order 22-05 signed by Trade Secretary Ramon Lopez, the DTI said “the application for general safeguard measures on the importation of LLDPE pellets and granules from various countries…is hereby dismissed.”

LLDPE resin is used in food, beverage, consumer products and packaging.

The DTI’s order to dismiss the petition filed by Gokongwei-led JG Summit Olefins Corp. (JGSOC) follows the recommendation from the Tariff Commission (TC) not to impose safeguard duties on imports of LLDPE pellets and granules.

Based on TC’s probe on the matter, it found there was no increase in imports of LLDPE pellets and granules during the period of investigation covering 2015 to June 2021.

Citing the TC, the DTI said that as LLDPE pellets and granules were not being imported at higher quantities whether absolute or relative to domestic production during the period of investigation, “the determination of serious injury or threat thereof, causation, and unforeseen developments has become moot and academic.”

Earlier, Lopez said that pursuant to the decision of the Supreme Court on the Philcemcor case, the DTI is bound by the recommendation of the TC.

In this instance, he said the aggrieved party may file a petition for review before the Court of Tax Appeals under the Safeguards law.

JGSOC, the country’s sole producer of LLDPE pellets and granules, filed the petition for safeguard measures on LLDPE imports based on the claim that increased imports of such hurt the domestic industry.

As the DTI found a causal link between increased imports of LLDPE and serious injury to the local industry in its preliminary probe on the petition, it requested the TC to conduct a formal investigation on the matter last year.