New cement trade rules raise concerns on fraud

A consumer advocate warned against lax regulations that would give way to “more risks for cheating” at the expense of consumer safety.

Ernesto Ordoñez, speaking in his capacity as Philippine Product Safety and Quality Foundation (PPSQF) director for quality enforcement, said the group has serious concerns regarding the implications of the latest department administrative order (DAO) released by the Department of Trade and Industry (DTI).

DAO 17-06, a topic that has pitted cement traders against manufacturers, removed the distinction that previously allowed only the latter an easier process for importing cement.

Old orders allowed manufacturers to bring in products even without an import commodity clearance as long as they have integrated cement plants. Traders did not have the same advantage.

Ordoñez is also the head of the Cement Manufacturers’ Association of the Philippines (CEMAP). He said they could not yet speak as a group for now, noting that internal talks were ongoing.

The new DAO also allows pre-shipment testing as an option for cement importers. This meant that the inspection of the product could already be done abroad, while only a verification process would be conducted within 16 hours once the cement reached its port of entry here in the Philippines.

While some saw this as leveling the playing field, Ordoñez warned the new rule could give rise to safety, product traceability, and accountability issues.

Ordoñez said the rules put too much trust in laboratories abroad, some of which may even be owned by cement manufacturers, therefore leading to a potential “conflict of interest.”

Since the DAO called for testings to be done in the supplier’s warehouse instead of during loading at the port of entry, some exporters could submit samples not representative of the batch they would be shipping, Ordoñez said.

He added the latest rule also allowed cement companies to use “representative agencies” instead of a local branch or office. Thus, manufacturers could not be held accountable should there be violations, he said.