The Department of Trade and Industry (DTI) announced it will adopt the Tariff Commission’s (TC) recommendation on the imposition of a safeguard duty on imported cement amounting to ₽14.00 per 40-kg bag or P349 per metric ton over a period of three years.
However, DTI Secretary Ma. Cristina A. Roque emphasized that the additional duty will be subjected to “dynamic monitoring and review” to ensure that prices remain stable and supply stays sufficient to cover demand at any given time” citing the critical need for cement in the rehabilitation and reconstruction efforts following the recent earthquakes that have severely affected several areas across the country.
The DT| noted that the TC’s recommended safeguard duty rate represents only around 3-4 percent of prevailing retail prices. This measure is intended to level the playing field between domestic manufacturers and importers and is not expected to be passed on to consumers, as the safeguard duty applies solely to imported cement.
The Department likewise clarified that the excess cash bond paid by importers difference between the provisional and final duty assessed will be refunded once the corresponding Department Order is issued.
In this light, the DTI stressed the importance of ensuring an adequate and affordable supply of cement nationwide. The DT will closely monitor the implementation and impact of the safeguard measure on cement prices to prevent any unwarranted price adjustments and to ensure that the duties remain at levels necessary to address the serious injury suffered by the domestic industry.
“The DTI will regularly review the safeguard duty to adjust its scope and intensity in response to market conditions. The Department will actively regulate the effects of safeguard tariffs to maintain a balanced environment where both local manufacturers and cement importers can adapt, compete, and thrive, particularly during periods of calamities or supply disruptions,” said Roque.
The DTI reaffirmed that the safeguard measure is temporary, designed to restore fair competition and ensure that consumer welfare is maintained.
The imposition of the safeguard duty stemmed from the petition filed by the Cement Manufacturers Association of the Philippines, which complained that the surge in imported cement has caused injury to the domestic cement manufacturing. The group also said they suffered low capacity utilization of their plants.
