Cement importers and traders have asked the Department of Trade and Industry (DTI) to dismiss its ongoing probe into an alleged surge in cement imports and refrain from imposing protectionist safeguard duties.
The group said the alleged injury suffered by local cement manufacturers is not due to an import surge but a cement supply shortage, coupled with increased demand.
In a press statement on Sunday, the group, represented by a legal counsel, said, “Imposing additional protectionist measures is unnecessary and would only serve to punish the importers unduly.”
The group consists of Cohaco Merchandizing & Development Corp., Fortem Cement Corp., NGC Land Corp., Pabaza Import and Export Inc., and Philcement Corp.
The statement is a follow-through to the position paper their legal counsel Villaraza & Angangco issued on Nov. 15, 2024, to the DTI.
“The increase in importation is not due to a surge warranting the imposition of safeguard measures. Instead, it is primarily a consequence of reduced domestic production coupled with the necessity to meet ongoing demand,” the importers’ counsel said.
A copy of the position paper, furnished to media only yesterday, contained the importers’ stand on the motu propio investigation that began on Oct. 28, 2024, by the DTI.
The preliminary investigation involved cement products classified under the Asean Harmonized Tariff Nomenclature Codes 2523.29.90 and 2523.90.00 from various countries. The period of investigation (POI) covered cement imports from 2019 through June 2024.
Anti-dumping duties have been slapped on cement imported from Vietnam ranging from 2.33 to 23.33 percent over importable volume until March 2028.
The group said cement imports stood at 5.33 million metric tons (MMT) in 2019, and grew by 10.34 percent in 2020 to 5.882 MMT and by 17.20 percent to 6.894 MMT in 2021.
The annual increase in cement imports during the three years was attributed to curtailed production as manufacturers faced difficulties operating due to quarantine restrictions imposed by the government.
“Cement suppliers, particularly importers, were compelled to increase the volume of imports to meet the demand for cement in the country,” the position paper stated.
The paper said as lockdowns and quarantine restrictions eased, cement manufacturers swiftly recovered and imports declined by 2.89 percent to 6.695 million metric tons (MMT) in 2022 before posting a moderate increase of 4.74 percent to 7.013 MMT in 2023.
Cement imports were estimated to have reached 7.361 MMT in 2024, representing a 4.96 percent slight increase.
“At this rate of increase, the imposition of safeguard measures under World Trade Organization standards is not warranted,” the group said.
While acknowledging the modest increase in cement imports, traders said, the figures do not accurately reflect the volume of cement imported into the Philippine market since a portion of this is used as raw material for the importers’ production of locally manufactured cement, the group said.
Considering this, the group asserted that the “reported surge in import volumes did not occur.”
The group also questioned claims of an alleged decline in local cement production amid increasing cement imports.
members of the Cement Manufacturers Association of the Philippines (CeMAP) and non-CeMAP members have expanded their operations in the country.
For instance, Eagle Cement Corp. increased its production capacity by establishing a new manufacturing facility in Bulacan with a capacity of 1.5 million metric tons.
One importer estimated that six new cement plants, including those in Cebu and Davao, are operated by non-CeMAP members, adding to the domestic market’s capacity.
The group said the local cement industry has shifted focus to the production of Type 1T cement such that imported cement primarily consists of Type 1 and Type 1P to ensure a steady supply of these products and meet market demand.
“The elements necessary to impose safeguard measures are absent in this case,” the group said, as it also cited the following reasons:
For one, there has been no unexplained surge in the importation of cement and any increase in importation was brought about by necessity due to demand and the decrease in production of the domestic industry.
