IMPORTERS on Thursday asked the Tariff Commission to deny the demand for a definitive safeguard measure on cement, as local manufacturers are reportedly profiting and are therefore in no need of protection.
The Philippine Cement Importers Association (PCIA) said in a statement on Thursday local players continue to post growth, whether in revenue or earnings before income tax, over the past years in the face of import surge. The PCIA argued there is no serious injury to the domestic industry, and no need for a definitive safeguard measure on cement.
“We have a domestic cement industry that is robust and resilient, amid the import surge, and already competitive against imports,” the statement read.
“Besides, the term ’serious injury’ connotes a degree of injury that causes or threatens to cause the demise or extinction of a domestic industry resulting from inability to compete with imports. This is far from what is happening,” it added.
Citing financial statements of local manufacturers, the PCIA said earnings of Eagle Cement last year grew 14.54 percent to P6.3 billion, from P5.5 billion in 2017.
Revenue of Holcim Philippines went up 2.59 percent to P35.6 billion, from P34.7 billion. The PCIA said Holcim’s earnings declined 16.66 percent to P3.55 billion, from P4.26 billion, “but is still nevertheless profitable.”
Importers also said revenue of Cemex Philippines, the parent firm of Apo Cement Corp. and Solid Cement Corp., improved 7.52 percent to P23.42 billion last year, from P21.78 billion in 2017, according to its financial statement.
The PCIA added that local players in 2013 imported 66,800 metric tons of cement, and had a combined sales of P85.6 billion. In 2017 imports jumped to 3.07 million MT, as well as domestic industry sales to P109.1 billion—a 27.45-percent improvement from 2013.
For importers, this should be reason enough for the Tariff Commission to thumb down the plea of local manufacturers for protection from imports through the imposition of a long-term safeguard duty on cement, the PCIA said.
“The 2013 to 2017 results of operations of the domestic cement industry showed its ability to compete with cement imports. Despite the surge of imports during the period of investigation [2013 to 2017], the domestic industry continued to exhibit improving revenues and continuing profitability,” the statement read.
The Tariff Commission is assessing whether it needs to place a definitive safeguard measure on cement as endorsed by Trade Secretary Ramon M. Lopez.
Lopez in January slapped a safeguard duty of P210 per MT on cement to protect the domestic industry, as market share of imports enlarged to 15 percent in 2017, from 0.02 percent in 2013, according to data from the Department of Trade and Industry.
Local sales reportedly fell 12 percent, or by P11.1 billion, in 2017, on price reductions—nearly 10 percent —that were implemented to compete with imports.