PH To Impose Higher Tax On Vietnam Cement To Protect Local Industry

The Department of Trade and Industry (DTI) said it will impose anti-dumping duties on two types of cement from Vietnam for five years.

In December, the DTI ordered a required tariff ranging from $1.61 per metric ton to $16.42 per metric ton for Ordinary Portland Cement Type 1 and Blended Cement Type 1P from Vietnam. The imposed tax will take effect after the period for filing a motion for reconsideration by relevant stakeholders.

An anti-dumping duty is a higher tax that a government imposes on imports to prevent companies or brands from killing the local industry by selling at cheaper prices.

The DTI reported that the two types of cement took up 53% of total Philippine cement imports from July 2019 to December 2020 the price difference between the imports and local cement was significant.

According to the DTI, the local cement industry was not “materially injured” but warned of a possible imminent threat in the future due to the rate of increase of dumped imports into the Philippines.

The DTI also cited the substantial production capacities of Vietnam could accommodate increasing exports to the Philippines, the former’s top export market.

The DTI said applications by Vietnam exporters which have not shipped the two cement types to the Philippines from 2017 to 2021 will be reviewed to determine their individual dumping duties.

“An application must be submitted to the Commission in writing containing a description of the foreign exporter’s product and the basis of the request. No antidumping duties shall be levied on imports from such exporters or producers while the review is being carried out,” the DTI order said.

Source: Inquirer.net