Levelling the playing field

If we are going to propel a new era of industrialization for the Philippines as mandated by the Tatak Pinoy Act, which also aims to enhance domestic products and industries' competitiveness, then the first order of business should be to level the playing field.

- MARY ANN LL. REYES

The Department of Trade and Industry (DTI), alarmed by the increased importation of cement into the country that resulted in an operating loss for the local industry last year, has by its own initiative (motu proprio) commenced a preliminary safeguard investigation to determine whether there is evidence that increased cement imports from 2019 to June 2024 are causing or are threatening to cause serious injury to the local cement industry.

Republic Act 8800 or the Safeguard Measures Act provides that the DTI secretary can immediately authorize the imposition of a provisional general safeguard measure in the form of a tariff increase in case of critical circumstances which would be difficult to repair, after a preliminary determination that increased imports are a substantial cause of, or threaten to substantially cause, serious injury to the domestic industry. Such provisional measure shall not exceed 200 days from date of imposition.

The law also allows the imposition of a definitive safeguard measure after the secretary transmits its records to the Tariff Commission for immediate formal investigation. Once the investigation is completed, the Commission will submit a report to the Secretary within 60 to 120 days and recommend an appropriate definitive measure such as an increase in duties on imported cement.

In 2019, the DTI imposed a general safeguard duty on cement imports, specifically for ordinary Portland cement type 1 and blended cement type 1P, for a period of three years after the Commission found a causal link between increased cement imports and threat of serious injury and impairment to the domestic cement industry.