The Philippine Plastics Industries Association (PPIA) deplored the recommendation of the Tariff Commission (TC) to impose safeguard duties on imported high density polyethylene (HDPE) saying this will increase the cost of packaging materials and plastic products and add to the increasing inflation.
“To grant safeguards for a period of three years to benefit a single entity for the ‘imminent occurrence of serious injury’ despite clear evidence of posting a healthy net income during the investigation period and embarking on expansion programs is not fair to the downstream industry which is expected to suffer from any decision favoring the request,” said the PPIA in a statement yesterday.
PPIA was reacting to the favorable decision of TC to grant the request of JG Summit Olefin Corp. for safeguard duties.
PPIA asked TC to reconsider its decision and appealed to the Department of Trade and Industry to not impose safeguard duties on HDPE resin.
The PPIA said the imposition of safeguard duties will also result in tariff distortion where cheaper imported finished products will continue to proliferate the market.
“The increased imports during the period of investigation is attributed to the lack of domestic supply and operational shutdowns resulting from the expansion of JGSOC, and the increased demand for products that they do not produce,” PPIA said.
