Tariff Commission to conclude safeguard probe on corrugating medium paper by November
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The Tariff Commission (TC) aims to conclude its investigation into safeguard measures imposed on imports of corrugating medium—a paper product used for packaging materials—by November to determine whether a definitive duty is necessary to protect the local industry.
The TC formally launched its probe on Aug. 27 to determine the merits of imposing a definitive safeguard duty against imports of corrugating medium paper, following its receipt of the request from Trade Secretary Cristina Roque to initiate the investigation.
During a preliminary conference on Friday, Sept. 5, the commission said interested parties have until Sept. 16 to submit their request to be included in the investigation.
The initial position papers were penciled in for Sept. 26, while forms related to the probe from participating domestic producers, importers, and exporters are due on Oct. 8.
By October, the TC will conduct ocular inspection and verification of submissions.
The domestic industry’s adjustment plan, which shall detail specific efforts to boost its competitiveness, will be accepted until Oct. 13.
Public hearings are tentatively scheduled to take place from Nov. 3 to 7, with final position papers due 10 days after the hearings conclude.
Last month, the Department of Trade and Industry (DTI) imposed a provisional safeguard duty of ₱3,438 per metric ton (MT) on imports of corrugating medium. The measure will be in place for a period of 200 days.
Corrugating medium is the paperboard component used in producing corrugated fiberboard, the material commonly used for packaging products such as cardboard boxes.
The DTI levied a safeguard measure on imports of corrugating medium paper after it found a “causal link” between the increased imports of the product and serious injury to the domestic industry.
“The increased volume of imports, in absolute terms and relative to domestic production, substantially impaired the operations of the local industry,” the DTI said in an administrative order (AO).
Based on the DTI’s preliminary investigation, imports of corrugating medium have significantly increased, rising 70 percent from 74,984 MT in 2019 to 127,874 MT in 2024.
Last year, Japan accounted for a 54.52-percent share of total imports, followed by China (32.55 percent), Vietnam (4.97 percent), and Indonesia (four percent).
From 2019 to 2024, the average share of imports relative to domestic production stood at 64 percent, with a growth rate of 115 percent compared to the local industry’s two-percent increase.
“The industry suffered loss of market share, declining utilization rate, reduction in employment and incurred losses while imported products captured an increasing portion of the market,” the DTI said.
As such, the department said the imposition of a provisional safeguard duty was in the public interest and would ensure that local manufacturers are provided with a level playing field to compete with imports.
As provided under Republic Act (RA) No. 8800, or the Safeguard Measures Act, the government can impose safeguard measures to give injured domestic industries remedy and time to adjust to import competition.
The DTI launched its preliminary investigation after receiving a petition from the domestic industry represented by The Pulp and Paper Manufacturers Association of the Philippines and two of its members, United Pulp and Paper Co. Inc. and Bataan 2020 Inc.