The Department of Trade and Industry (DTI) has ordered the imposition of provisional safeguard duties on imported cement, specifically Ordinary Portland Cement and Blended Cement, at ₱400 per metric ton or ₱16.00 per 40-kilogram bag, to protect local producers.
According to a DTI news release, this measure will take effect in the form of a cash bond for 200 days and “shall take effect from the date of issuance by the Bureau of Customs of the relevant Customs Memorandum Order/Circular.”
The decision, contained in DTI Department Administrative Order No. 25-01, comes after a preliminary investigation into the impact of rising cement imports on the local industry.
The investigation found that between 2019 and 2023, imported cement significantly increased, displacing local products and contributing to serious harm to domestic cement producers.
“The market share of local cement producers decreased during the period of investigation from almost 78% in 2019 to almost 68% in 2023, as imports in the domestic market displaced locally produced cement from approximately 22% market share of imports in 2019 to 32% in 2023,” the DTI said.
As a result, local cement manufacturers experienced falling sales, production, capacity utilization, profitability, and employment, with the worst impact felt in 2023.
The DTI said the rising cost of production and the need to lower prices to compete with imports led to the industry’s first operating loss in the observed period.
“The existence of a causal link between the increased imports of the products under consideration and the serious injury to the domestic industry has been established,” the DTI said in the news release.
“The existence of critical circumstances was established which warrants the imposition of a provisional safeguard measure,” it added.
The DTI has transmitted the case to the Tariff Commission for a formal investigation, which will include public hearings where affected parties can present their evidence and views. The Commission’s formal investigation will determine whether or not to make the DTI order final.
This safeguard measure is authorized by Republic Act 8800 and allowed under ASEAN Harmonized Tariff Nomenclature (AHTN) Code 2523.29.90 and Blended Cement under AHTN Code 2523.90.00.
The measure aims to temporarily protect local industries from the negative effects of increased imports, as it provides a chance for local producers to adjust and become more competitive.
“This decision is based on the affirmative findings after conducting the preliminary safeguard measures investigation and considering the submissions of interested parties and pieces of evidence made available to the Department,” the DTI said.
