The Cement Manufacturers Association of the Philippines (CeMAP) welcomed the imposition of definitive anti-dumping duties against cement imports from Vietnam stating the move is a show of support for the investments and development of the domestic cement manufacturing industry for job creation and economic multiplier as the economy goes back to growth.
In a statement, CeMAP reiterated that there is sufficient domestic capacity to serve local demand for cement. Even without cement imports, the domestic industry is highly competitive with 14 integrated cement plants operating in the country, with a couple more being constructed.
The Department of Trade of Industry (DTI) has issued Department Administrative Order 22-17 on Dec. 16, 2022, imposing Definitive Anti-Dumping Duty against Importations of Type 1 and Type 1P cement from certain exporting manufacturers and traders in Vietnam. The DAO concurs with the Tariff Commission’s recommendation to slap anti-dumping duties because of the existence of imminent threat of material injury to the domestic cement industry.
As stated in the Order, the DTI reviewed the recommendation of the Commission and imposed the Definitive anti-dumping duties for a period of five years on imports of Ordinary Portland Cement Type 1 and Blended Cement Type 1P originating from certain exporters / manufacturers from Vietnam.
According to its estimates presented during the Tariff Commission’s Public Hearing on Anti-Dumping, domestic cement capacity stands at 46.8 million metric tons vis-à-vis an apparent consumption reported by the TC of 28.7 million metric tons for the year 2021. Local manufacturers also continue to expand the capacity of its plants and upgrade existing facilities in order to sufficiently serve market demand. This provides much comfort on stability of supply.
With this boost received from DTI, CeMAP said, the domestic industry is very much reassured of the partnering and unwavering support from the Philippine government in upholding fair competition in the market. “It also increases industry’s resolve to continue pursuing investments, developing further this proudly-local industry in areas such as sustainable manufacturing and greener cement products, generating local employment and other socio-economic benefits for Filipinos, and ultimately contributing to economic recovery and overall nation building,” CeMAP said.
In July 2019 to December 2020, the period of investigation for dumping determination, DTI noted of price differences between the normal values and export prices to the Philippines of Ordinary Portland Cement Type1 and Blended Cement Type 1P originating from Viet Nam. 5. 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 DTI order has identified 11 Vietnamese exporters for dumping cement into the country. The anti-dumping duty, which is company specific, ranges from $1.61 to a high of $16.42 per metric ton of imported cement from the identified firms. All other exporters that were not identified have rates of $10.29 to $16.42 per MT.