The Department of Trade and Industry (DTI) has implemented a provisional safeguard measure on cement imports following an initial investigation that indicated increased imports have caused significant harm to the domestic industry. This action is outlined in DTI Department Administrative Order No. 25-01, dated February 20, 2025.
The provisional measure requires importers to post a cash bond of P400 per metric ton, equivalent to P16 per 40-kilogram bag, for products classified under AHTN Code Nos. 2523.29.90 (ordinary Portland cement) and 2523.90.00 (blended cement). Imports from developing countries specified in the order are exempt but must provide a certificate of origin.
This decision aligns with Republic Act No. 8800, known as the Safeguard Measures Act, which permits such measures in urgent situations where delays could cause irreparable damage, and where preliminary findings show that increased imports are a substantial cause of injury to the local industry.
The DTI initiated a preliminary investigation last year to assess whether the surge in cement imports was adversely affecting the domestic sector. Evidence and submissions from stakeholders revealed a direct link between the rise in imports and the challenges faced by local manufacturers.
Between 2019 and 2023, the volume of imported cement increased significantly, coinciding with a decline in the domestic industry’s performance. The market share of local producers dropped from approximately 78% in 2019 to about 68% in 2023, while imports grew from 22% to 32% over the same period. This influx of imports led to reduced sales, production, capacity utilization, profitability, and employment within the local industry, particularly in 2023.
The DTI emphasized that implementing this provisional safeguard measure serves the public interest. The domestic industry has committed to upgrading facilities and enhancing production efficiency, which is expected to offer consumers a broader range of competitively priced products.
While aiming to protect consumers, the DTI also seeks to support investors and industries that provide employment opportunities. Moderating imports is deemed necessary to balance trade and ensure a level playing field for local manufacturers. The safeguard measure is temporary and is not anticipated to cause a cement shortage, as domestic producers have sufficient capacity to meet national demand.
Stakeholders, including the Cement Manufacturers Association of the Philippines (CeMAP), have expressed support for the DTI’s decision, recognizing it as a step toward fair competition and the revitalization of the local cement industry.
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