PH to levy higher tax on Vietnam cement to protect local industry
The Department of Trade and Industry (DTI) is set to impose antidumping duties on two types of cement from Vietnam for a period of five years.
In an order dated Dec. 16, the DTI required tariffs 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. It will take effect after the period for filing a motion for reconsideration from relevant stakeholders.
An antidumping duty is a higher tax that a government imposes on imports to stop companies or brands from killing the local industry by selling at cheaper prices.
Imminent threat
The DTI noted the two cement types have accounted for 53 percent of total Philippine cement imports from July 2019 to December 2020 and that the prices vis-à-vis local ones were not negligible.
While evaluations showed the domestic industry was not “materially injured” by Vietnam cement from 2017 to 2021, the department warned of an imminent threat in the near future.
This was possible amid the significant rate of increase of dumped imports into the Philippines capturing substantial market share, the presence of price undercutting, price depression and price suppression during the covered period, according to the DTI.
Substantial production
It also cited the substantial production capacities of Vietnam that could accommodate increasing exports to the Philippines, the former’s top export market.
For Vietnam exporters which have not shipped the two cement types to the Philippines from 2017 to 2021, the DTI said their individual dumping duties would be determined following a review of their applications.
“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 order read.
