Zero tariff on steel billets urged

CEBU CITY—The Tariff Commission is recommending to eliminate the three percent tariff on imported steel billets, noting the growing demand for the product due to a number of government-led infrastructure projects and private construction activities.

“We have a very dynamic infrastructure and construction industry right now because of the different infrastructure (projects) that the government is undertaking so there is a lack of supply of billets. The backbone of the construction industry is steel. We need these steel billets for these projects and that’s why there’s a petition to bring down the tariff for this product,” Tariff Commission Chair Edgardo B. Abon said on the sidelines of the Apec Third Senior Officials’ meeting here.

Abon said the tariff modification petition was filed by the construction firms and local importers of steel billets who are also involved in the steel manufacturing industry.

“There are only a few companies that produce steel billets and most of the time, they don’t offer their (output) to other companies as these are mainly for their own use,” he said.

Currently, about two-thirds of the steel billets being used in the domestic market are imported. Revenues from imported billets are said to be around P330 million yearly, Abon said.

“We’ve already completed the hearings. We’re already drafting the recommendation,” he added.

Steel billets comprise the upstream segment of the local steel manufacturing industry. In recent years, however, the Board of Investments noted an increased importation of billets and coated steel products due to big ticket government infrastructure projects. Amy R. Remo