DAVAO CITY—The Department of Trade and Industry (DTI) here said the declining tariff on many products, including cement, in the Association of Southeast Asian Nations has drastically reduced the smuggling attempts on these products.
The statement came as the port of Davao continued to see an increasing volume of cement imports due to the construction binge in the city and across Mindanao.
“With zero tariff on cement, there is practically no reason to smuggle it to our country,” said Edwin O. Banquerigo, DTI assistant regional director here.
To smuggle is basically to avoid the regular import and export tax regime on products, he said.
He added the DTI would now focus more on the compliance of standards by the companies of origin of the cement imports, whose volume continued to increase and has been coming in on a monthly basis.
“We would be looking at the ‘PS’ or Product Standards mark on the products and if the companies where the cement originated have the PS certification to acquire and ship the products,” he said.
From June to December last year, the DTI monitored as many as 5 million bags of cement landing at the port of Davao, and by as many as 800,000 bags by January this year alone.
“These are all good-quality cement,” he said.
The imports came from China, Thailand, Vietnam and Indonesia, with the latter three being members of the Asean. Two years ago, the Asean started to bring several or almost all products to zero tariff as it seeks to develop a single regional-integrated market.
China is among the economically rich countries that have sought special trading rights with the Asean, along with South Korea, Japan and Australia.
Banquerigo added the influx of imported cement could hardly fill the current and ongoing demand for cement and other construction materials, as the national road-widening and expansion activities are being complemented with the hectic construction binge on hotels, condominiums and subdivisions, as well as the construction of business buildings.
“The demand remains very big that both local manufacturers and imports could satisfy the requirement,” he said.
He added the inspection and testing of cement would be periodically conducted on the imports to ensure the flood of imports would not hurt local suppliers and traders.
“The product testing should also assure the market of the quality items that they bought for the value of their money and safety of the clients,” he said.