Thursday, June 19, 2025

PH tariff body slaps duties on imported Thai gypsum boards

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The Philippines’ Tariff Commission has imposed five-year anti-dumping duties on imported standard gypsum boards from Thailand, following findings such imports have caused material injury to the domestic industry.

After a formal investigation, the Commission issued its notice of conclusion and decision on June 2, 2025; however, it was not posted on the tariff body’s website until June 9.

The Tariff Commission is an attached agency of the former National Economic and Development Authority (NEDA), now called the Department of Economy, Planning and Development (DEPDev).

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Based on the decision, the imported gypsum boards from Gypman Tech Company Limited, Thai Gypsum Products PCL, and other exporters from Thailand will face a dumping rate of 8.52 percent to 9.18 percent.

Gypsum boards, also known as drywall or plasterboard, are used for interior walls, ceilings, and partitions.

The tariff agency acted favorably on the petition of Knauf Gypsum Philippines Inc., the sole manufacturer of standard gypsum boards in the Philippines.

The agency said the volume of imported standard gypsum boards at dumped prices is not negligible, accounting for 71 percent of total Philippine imports of similar products during the period of investigation (POI) from 2019 to September 2024.

The agency found there was significant price undercutting by dumped imported boards, which led to price suppression.

The industry’s average prices were lower than average costs to produce and sell to remain competitive and protect its market share, the agency said.

“While there are other factors that contributed to the impairment in the overall position of the domestic industry, the results, when taken together, show that dumped standard gypsum board from Thailand caused material injury to the domestic industry,” the decision stated.

In 2020, the weighted average ex-plant price of the locally produced similar product was 14 percent higher than the weighted average landed cost of the dumped imported product from Thailand.

The decision noted that while this difference has narrowed to less than 2 percent, it subsequently widened to 35 percent in 2023.

Price undercutting continued in January to September 2024, albeit at a lower level, it added.

The agency also noted that price suppression occurred during the period of investigation as the prices of dumped imports prevented increases in the prices of similar domestic products. By “price suppression,” the agency was describing how the allegedly dumped product prevented the domestic producer from increasing the selling price to a level that would allow full recovery of the producer’s cost of production.

The decision provides that the secretary of the Department of Trade and Industry (DTI), within 10 days from receipt of the affirmative final determination by the Commission, will issue a department order imposing an anti-dumping duty on imported product, commodity, or article.

The final report of the Commission was issued and received by the DTI on May 30, 2025. ***

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