Proposal for double testing of steel imports hit

Steel trader Mannage Resources Trading Corp. (MRTC) opposed proposals by the Bureau of Product Standards (BPS) to impose additional quality inspection of imported steel, saying it violates World Trade Organization (WTO) rules and the Philippines’ free trade commitments.

In a statement, MRTC president Lawrence Daniel Sy said a proposed department administrative order—which amends the BPS product certification scheme by imposing additional testing on imported steel and other products—has unclear objectives and has no scientific basis.

“The principle of National Treatment which upholds equal treatment for imported and locally-produced products is violated by the proposed order’s amendments,” he said.

Under a proposed order, imported products like cement, BI/GI pipes, flat glass and steel will be subjected to further testing upon arrival in the Philippines. In the case of steel, the proposed sample collection and testing shall be done inside the premises of the Bureau of Customs.

“Since imported steel undergoes mandatory testing based on Philippine National Standards by duly accredited international testing laboratories at their point of origin, imposing additional conformity assessment requirements like product inspection and testing upon arrival in the Philippines discriminates them from locally produced steel,” Sy said.

He stressed that this violates the “one-test-recognized-globally” principle since the Philippines is a signatory to the Mutual Recognition Arrangements under the International Laboratory Accreditation Cooperation (ILAC) and Asia-Pacific Laboratory Accreditation Cooperation (APLAC).

“The Philippines, particularly BPS, should recognize foreign test data and results from laboratories accredited by national accreditation bodies which are signatories to the ILAC/APLAC agreement to avoid multiple testing and inspection of products. Imposing additional testing in the Philippines under the proposed order is tantamount to a repudiation or non-recognition of international test results,” Sy said.

Aside from violating international rules, he stressed that multiple testing means additional costs to the importer, prolonged processing time, delays caused by port congestion and additional red tape.

He lamented that for local deformed steel manufacturers, test sampling is conducted in their production line by taking 1 sample per 20 tons, done in-house without any intervention from third party inspectors. The testing is done at the manufacturer’s testing facility and not conducted by a third party independent testing laboratory.

Sy also warned that the Philippines’ trading partners could also object to the multiple testing requirement.