Knauf Gypsum Philippines Inc., the leading manufacturer of gypsum board in the country, is asking the Tariff Commission (TC) to cut the tariffs on natural gypsum to zero.
Knauf Philippines Marketing Head Charlene Bonalos said the tariff exemption would allow the company to reduce costs.
“In terms of our competitors, gypsum boards are priced the highest. We are the premium brand in the market. All other competitors are imported and they have the capacity to bring down their prices,” Bonalos said during a TC hearing on Tuesday.
“That is why we are seeking for a tariff exemption because that would bring our prices down at least we can continue to have better margins so that we can continue to support the company.” Knauf is the sole gypsum board manufacturer in the Philippines.
On February 15, the TC issued a notice of public hearing stating that it will conduct a public hearing on the petition filed by Knauf Gypsum Philippines, Inc. to reduce the Most Favoured Nation (MFN) tariff rate on natural gypsum, classified under AHTN 2022 subheading 2520.10.00 from 3 percent to 0 percent.
The products covered by the petition are gypsum and anhydrite. According to the tariff body’s presentation during the hearing, natural gypsum is a “hydrated calcium sulphate” while natural anhydrite is an “anhydrous calcium sulphate”. These materials, TC said, are either mined or quarried.
According to the tariff body, both natural gypsum and anhydrite are used as inputs in the manufacture of plasterboards, fertilizer and jewelry. The commission added that these are also used as a “retarding agent” in cement, to increase cement setting time.
TC said the raw materials are not locally produced.
From 2018 to 2022, imports of natural gypsum reached 2.9 million metric tons (MMT). The lowest import volume of 406,170 MT was recorded in 2022, 39 percent lower compared to the previous year’s level, according to data from the TC.
Anhydrite imports reached 4,915 metric tons (MT) from 2018 to 2022. In 2020, anhydrite imports surged to 4,272 MT.