DTI to announce SRP on cement next week
Trade and Industry Secretary Ramon Lopez said that suggested retail prices (SRP) on cement might be announced next week.
Lopez said earlier this week that the SRP would apply on a per-brand basis, the same way SRPs were assigned to other basic goods and prime commodities.
In the case of cement, he said this would be based on their prices last December. He also said this would apply only to local cement.
Given the big number of importers, competition is expected to be tighter in the imported cement space and prices would likely be kept competitive, thus, SRP is no longer needed, he said.
This means the DTI will be announcing the SRP for every cement brand weeks after the tariff on imported cement was imposed.
The DTI imposed a provisional safeguard duty on imported cement through department administrative order 19-02, which will remain in effect for 200 days starting February.
The same department order required local manufacturers “to maintain SRP.”
Safeguard measures are imposed if a domestic industry has been proven to be seriously harmed by the surge in imports, a case which DTI claims was true for the local cement industry.
The tax will come in the form of a cash bond worth P210 per metric ton. Some cement importers said they would hike retail prices to offset the additional cost.
The Tarif Commission, an independent and quasi-judicial body, is investigating the case to verify the DTI’s claims. The SRP will be in effect while the hearing at the commission is ongoing.
