The Department of Trade and Industry (DTI) has asked the Tariff Commission (TC) to probe the reported surge in the volume of imported resins, particularly of high-density polyethylene (HDPE) and linear low-density polyethylene (LLDPE).
The DTI request stemmed from its review on a safeguard measure petition filed by JG Summit Olefins Corp. (JGSOC) to protect Philippine petrochemical manufacturers from unfair foreign competition.
HDPE is used in consumer and industrial packaging, while LLDPE is used for laminated films and general-purpose bags. Within the Asean, both raw materials are charged zero tariffs.
“The duties are being requested to safeguard the local manufacturing industry,” JGSOC said, adding that “historically, HDPE and LLDPE imports tend to undercut the prices of the domestic industry.”
The local petrochemical industry is hoping government can support and safeguard local manufacturers from unfair foreign competition, similar to what India did recently.
JGSOC said the Indian government is expected to impose anti-dumping duties (ADD) on low density polyethylene (LDPE) imports from Saudi Arabia, Singapore, Thailand and the US.
TC’s investigation began in September last year following DTI’s review of JGSOC application as well as and imports data covering the petitioned products.
JGSOC claimed in its filing of the safeguard measures petition the volume of HDPE and LLDPE – key raw materials used in many consumer products – being imported into the country in recent years were in quantities that are substantial to cause serious injury to the local petrochemical industry.
In its initial reports, the DTI found that there was a substantial increase in imported HDPE from 2015 to 2019. This is especially true in 2016 (181 percent), and 2019 (26 percent).
LLDPE imports also increased significantly during the same periods, especially in 2018 (38 percent).
The DTI report said the industry suffered a loss of market share, and saw a decline in domestic sales, production, utilization rate, reduction in labor productivity, leading to incurred losses and an increase in inventory.
