The Tariff Commission (TC) has ordered the imposition of anti-dumping duties on imported cement from Vietnam for a period of five years saying the increasing volume of importation and industry developments pose imminent injury to the domestic cement industry in the near future.
In an order issued on Oct. 12, 2022, which concurs the preliminary findings by the Department of Trade and Industry (DTI), concludes its formal investigation on cement imports from Vietnam. The Commission noted that although the domestic cement industry at present is not materially injured by dumped Ordinary Portland Cement Type 1 (AHTN 2017 heading No. 2523.29.90) and Blended Cement Type 1P (AHTN 2017 heading No. 2523.90.00) from Vietnam based on data during the period of investigation (POI) 2017-2021, the investigation also established that the “threat of material injury to the domestic cement industry is imminent in the near future from dumped imports from Vietnam.”
This is because of the significant rate of increase of dumped imports into the Philippines capturing substantial market share, price undercutting, and price depression and price suppression during the POI.
The TC further noted of the substantial available production of capacities of Vietnam that can accommodate increasing exports to the Philippines, its top export market, and the openness of the Philippine cement market as among reasons contributing to the imminent danger being faced by the domestic industry.
During the POI July 2019 to December 2020, the TC investigation showed price differences between the normal values and export prices to the Philippines of Ordinary Portland Cement Type 1 and Blended Cement Type 1P originating from Vietnam.
The volume of imports of Ordinary Portland Cement Type 1 and Blended Cement Type 1P at dumped prices is not negligible, accounting for 53 percent of total Philippine cement imports from July 2019 to December 2020.
The TC also ruled that locally produced Ordinary Portland Cement Type 1 (AHTN 2017 heading No. 2523.29.90) is like production to Portland Cement Type 1 imported from Vietnam. In the same manner, TC said that the local Blended Cement Type 1P(AHTN 2017 heading No. 2523.90.00) is the same as the Blended Cement Type1P imported from Vietnam. Both products have the same applications and production processes.
Anti-dumping duty is exporter/trader and country specific. With that the TC said it has also terminated its investigation on exporters found to have de minimis dumping margins, including those determined to not have dumped such as those with negative dumping margins, during the POI for dumping determination.
The rate of anti-dumping duty, however, was not clear as the full TC report on the conclusion and formal investigation cannot be downloaded from its website.
An official said there are an estimated 20 exporters imposed with the anti-dumping duty. The rates also varies and there are slight changes in the anti-dumping duties per exporter from the provisional anti-dumping duty previously imposed by the DTI.
For instance, the supplier of Philcemcor, the cement arm of the Phinma Group and one of Vietnam cement importers, was slapped with supplier was imposed $4.78 per ton.
The anti-dumping duty is expected to further raise prices of cement in the domestic market.
In December last year, the DTI imposed provisional anti-dumping duty imposed on Vietnam cement after conducting a preliminary determination on the anti-dumping petition filed by Republic Cement & Building Materials, Inc. (RCBM), CEMEX – Solid Cement Corporation/ Apo Cement Corporation, and Holcim Philippines Inc. The DTI preliminary determination showed that 9 out of 16 Vietnamese exporters of Type 1 cement and 4 out of 12 exporters of Type 1P cement have been dumping cement in the country causing material injury to the domestic cement industry.
The DTI provisional anti-dumping duties on Type 1 cement ranged range from $1.02/MT to $10.53/MT, or 2.69 percent to 31.87 percent of the export price. The 9 exporters account for 82 percent of total imports of Type 1 cement. Meanwhile, provisional anti-dumping duties on Viet Nam’s Type 1P cement exports will range from $1.16/MT to $12.79/MT, or 3.80 percent to 29.20 percent of the export price. These provisional duties are estimated to add P2.01 to P25.08 to the import cost of a 40 kg bag of cement, but this is not expected to be passed on to the users due to strong competition from local and other imported brands.