The Department of Trade and Industry (DTI) has suspended the imposition of the definitive safeguard measure on imported high-density polyethylene (HDPE) pellets and granules following the shutdown of the country’s sole producer, JG Summit Olefins Corp. (JGSOC).
Late Wednesday, the DTI announced the suspension through Department Administrative Order (DAO) No. 25-08, Series of 2025, dated July 11 and signed by Trade Secretary Cristina Roque.
The order halts the additional duty that had been in effect for the past three years.
According to the order, the suspension will remain effective for the rest of the safeguard measure’s term—or until JGSOC resumes normal operations.
The move responds to a request made by the Philippine Plastics Industry Association in February 2025, urging the DTI to lift the safeguard duty on HDPE to stabilize supply.
HDPE is a key raw material used in manufacturing a wide range of products, from food and beverage containers to construction-grade pipes.
In January 2025, JG Summit Holdings Inc. announced the indefinite commercial shutdown of its petrochemical business due to adverse market conditions.
In February, JGSOC confirmed in a letter to the DTI that it had indeed implemented an indefinite commercial shutdown, though it expected to continue selling HDPE from existing inventory until the third quarter of 2025.
The DTI stated that the suspension allows for a review of the measure’s impact on the industry and that it will continue to monitor developments, with potential adjustments to the policy if needed.
The suspension comes after the completion of the three-year term of the safeguard measure, which was originally introduced to shield the local HDPE industry from rising import volumes.
In 2022, DAO 22-13 imposed varying safeguard rates annually, with the third-year rate of P1,208 per metric ton taking effect on May 9, 2025.
The policy was based on findings and recommendations by the Tariff Commission, following an investigation covering the years 2015 to 2019 and updated data through September 2020.
