The Department of Trade and Industry (DTI) will impose the safeguard duty amounting to PHP14 per 40-kg bag of cement, based on the recommendation of the Tariff Commission, for the next three years.
In a statement, DTI Secretary Cristina Roque said safeguard duty on Ordinary Portland Cement Type 1 and Blended Cement will “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.”
She said the amount of the safeguard accounts for about 3 percent to 4 percent of prevailing retail prices.
“The imposition of the safeguard 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,” the statement reads.
The statement clarified that “the excess cash bond paid by importers or the difference between the provisional and final duty assessed will be refunded once the corresponding Department Order is issued.”
It said Roque “remains mindful of the recent earthquakes that have severely affected several areas across the country, underscoring the critical need for cement in the rehabilitation and reconstruction of impacted communities.”
It added the department “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,” Roque said. (PNA)