Local cement manufacturers obtained another relief from the Department of Trade and Industry (DTI) which imposed provisional anti-dumping duties on specific Portland cement brands imported from Vietnam.
In an order dated Dec. 2, 2021, DTI slapped anti-dumping duties on Type 1 cement ranging from $1.02 per metric ton (MT) to $10.53 per MT, or 2.69 to 31.87 percent of the export price. This is equivalent to an additional P2.01 to P25.08 to the import cost of a 40- kilogram bag of cement.
In a statement, DTI Secretary Ramon Lopez said these duties will not result in an increase in the retail price of cement because its effect on landed cost is minimal.
“Any price increases in imported cement will be discouraged by competition from domestic cement producers,” Lopez said adding local cement manufacturers have enough capacity to meet domestic demand
He added: “The provisional anti-dumping duties will be imposed only on specific Vietnamese exporters found to be dumping cement to the Philippines. Vietnamese exporters who are not dumping can continue to export cement without having to post the provisional anti-dumping cash bond.”
Imported cement are also slapped with safeguard duties of P9.80 per bag.
A preliminary determination on the anti-dumping petition filed by Republic Cement & Building Materials, Inc. (RCBM), CEMEX — Solid Cement Corp. / Apo Cement Corp., and Holcim Philippines Inc. showed that 9 out of 16 Vietnamese exporters of Type 1 cement and four out of 12 exporters of Type 1P cement have been dumping cement in the country causing material injury to the domestic cement industry.
The 9 exporters account for 82 percent of total imports of Type 1 cement.
DTI’s findings also show that during the investigation period, dumped cement imports from Vietnam accounted for 55 percent of total imports from July 2019 to December 2020.
Cement imports from Vietnam account for almost 90 percent of the country’s total cement imports.
Vietnamese cement exports to the Philippines accounted for 46 percent of Vietnam’s world export volume for the period of 2017 to 2020.
The case will be forwarded to the Tariff Commission for a formal investigation to determine if a permanent anti-dumping duty may be imposed.
Dumping occurs when exporters sell their products to an importing country at a price lower than its normal value when consumed in their home market. Under the World Trade Organization (WTO) Anti-Dumping Agreement, WTO member countries are entitled to impose anti-dumping duties to mitigate dumping-related injury to the domestic industry.
The DTI’s provisional anti-dumping duties are equal to the dumping margin, which is the difference between Vietnam’s domestic and export prices.
Anti-dumping duty is a form of trade remedy to correct unfair trade practices being done by specific exporters/brands and thus, level the playing field in the industry.
