The Tariff Commission (TC) of the Philippines has completed its formal investigation into the importation of ordinary Portland cement (OPC) Type 1 and blended cement, recommending the imposition of a definitive safeguard duty to counter serious injury sustained by the domestic industry from a sharp increase in imports. The report, dated 30 September 2025, followed a motu proprio investigation launched by the Department of Trade and Industry (DTI) under the Safeguard Measures Act (Republic Act No. 8800).
The DTI initiated the preliminary safeguard investigation on 28 October 2024, finding prima facie evidence that cement imports were harming local manufacturers. In February 2025, it imposed a provisional safeguard duty of PHP400/t (US$6.88), PHP16 per 40 kg bag, for 200 days under Department Administrative Order No. 25-01. The case was referred to the TC on 25 February 2025 for a full investigation.
The TC’s inquiry, covering 2019 to December 2024, included data verification, plant inspections, and public hearings with local producers, importers, exporters, and government agencies.
It found that imports of cement rose sharply following the expiry of previous safeguard measures in late 2022. Imports not subject to prior duties grew by 460 per cent in 2023 to 5.45Mt and rose a further 14 per cent in 2024 to 6.20Mt. By 2024, total imports reached 7.55Mt—around 45 per cent of domestic output—a sudden and substantial surge that displaced locally made cement.
The domestic industry’s market share dropped from 95 per cent in 2022 to 72 per cent in 2024, while capacity utilisation fell below 60 per cent. Sales, production, and profitability all declined as local producers were forced to match low import prices, often selling below cost. This weakened their financial position, reduced employment, and curtailed investments in modernisation and sustainability.
The TC determined that this downturn constituted serious injury, directly caused by increased imports. While high power and transport costs contributed to losses, these were deemed secondary compared to the import surge.
The Commission recommended imposing a definitive safeguard duty of PHP349/t (PHP14 per 40kg bag) on imported OPC Type 1 and blended cement for three years. The duty corresponds to the 2024 price gap between imported and locally produced cement.
The measure aims to provide temporary relief while local manufacturers execute adjustment plans to enhance efficiency, energy use, and competitiveness. Under the de minimis rule, imports from smaller developing suppliers such as Indonesia, Pakistan, Taiwan, and Thailand will be exempted.
According to the TC, the safeguard will restore fair competition by mitigating price distortions without restricting supply. It is expected to stabilise employment, encourage reinvestment in domestic production, and strengthen linkages with local industries in mining, logistics, and construction.
The measure will be reviewed periodically to ensure it remains necessary and proportionate. Once conditions normalise, duties will be progressively reduced in line with the WTO Agreement on Safeguards.
The TC concluded that the rapid import surge since 2023 had caused serious injury to the Philippine cement industry. The final decision now rests with the Secretary of Trade and Industry, who must act within 15 days of receiving the TC’s report.
