Posted on 05 Feb 2015
The Philippines tariff commission has proposed that a safeguarding measure against imports of angle bars be extended by another four years to let the domestic industry continue to implement its adjustment plan.
The current safeguarding measure, which started in 2009, will expire on March 15 this year unless it is extended further.
The tariff commission recommended in a statement it released last week that the measure be extended but at a reduced sum of 3,345 pesos ($76) per tonne in the first year.
The duty was calculated by reducing the current safeguarding duty of 3,520.73 pesos ($80) per tonne by 5%, consistent with the level of reduction set by the country’s department of trade and industry (DTI) in earlier reviews, it said.
The commission found that the domestic steel angle bar industry was making positive adjustments in its attempt to compete with imports. Through improvements in production processes, the industry was able to lower its costs, which in turn allowed it to reduce prices and increase its competitiveness, it said.
However, there has been a significant increase in the volume of imports over the past two years.
“Termination of the safeguarding duty will make it difficult for the domestic industry to price its products at a competitive level,” the commission said.
“Without the safeguarding measure, the gains made by the domestic industry will be negated as it still needs time to fully put in place its [developments] under the adjustment plan,” it added.
The commission’s investigation, which covered the period from 2011 into the first half of 2014, followed the filing of a petition in August last year with the country’s department of trade and industry (DTI) by the Steel Angles, Shapes & Section Manufacturers Assn of the Philippines (SASSMAPI).
SASSMAPI represents Lunar Steel, Cathay Metal, Maxima Steel and 21st Century, whose collective output constitutes a major proportion of the total domestic production of steel angles.
The applicant companies alleged that extension of the safeguarding measures on steel angle bar was necessary to prevent or remedy the serious injury caused to the domestic industry by imported products.
The products affected come under AHTN 2007/2012 heading numbers 7216.21.00 and 7216.50.10.
