Philippines imposes duties on Vietnam cement imports

Philippines imposes duties on Vietnam cement imports
22 December 2022

The Philippines’ Department of Trade and Industry (DTI) has imposed duties on cement imports from Vietnam for five years. In a department order dated 16 December 2022, Trade Secretary Alfredo E Pascual said dumping of ordinary Portland cement Type 1 and blended cement Type 1P from Vietnam in the country poses an "imminent threat of material injury to the domestic cement industry".

The move comes after the DTI reviewed the final report of the Tariff Commission (TC) regarding its investigation on alleged dumping of cement imports from Vietnam, reports Business World. The petition was filed by Republic Cement & Building Materials, Inc, CEMEX Philippines Holdings' subsidiaries - Solid Cement Corp and Apo Cement Corp, and Holcim Philippines, Inc.

The TC had earlier ordered the imposition of anti-dumping duties on cement imports from Vietnam. In its report, the commission noted that the locally-manufactured cement products are similar to the ones imported from Vietnam. “The volume of imports [of both types of cement] at dumped prices is not negligible, accounting for 53 per cent of total Philippine cement imports from July 2019 to December 2020,” the commission noted.

According to the TC's final report, the country's Type 1 and Type 1P cement imports rose by 11.2 per cent to 5.896Mt in 2020, and 16.2 per cent to 6.850Mt in 2021. In the first half of 2022, Type 1 and Type 1P cement imports rose by seven per cent to 3.5Mt, compared with the three-year average of 3.27Mt between 2019 and 2021.

“The existence of threat of material injury to the domestic industry is imminent in the near future, as indicated by the significant rate of increase of dumped imports into the Philippines capturing substantial market share; presence of price undercutting, price depression and price suppression during the (period of investigation),” the TC said.

It also cited the significant available production capacity of Vietnam, which can accommodate more exports to the Philippines, as well as the Philippines' open market. The DTI order identified 11 cement companies from Vietnam that will be slapped with definitive anti-dumping duties.

The dumping duties on Type 1 cement start at US$1.61/t or 3.9 per cent to US$10.29/t or 27.64 per cent of the price. Dumping duties on Type 1P cement exports range from US$1.43/t or 3.41 per cent of the export price to US$16.42/t or 54.82 per cent of the export price.

The DTI said the order will take effect after the period for the filing of a motion for reconsideration lapses, in case there is no motion filed or if the motion is rejected. The Bureau of Customs will then issue a memorandum order.

Provisional anti-dumping duties were imposed on cement imports from Vietnam between December 2021 to October this year, driving prices higher.





Published under Cement News