Tariff Commission Recommends Safeguard Duty

Article excerpt

MANILA, Philippines - The Tariff Commission (TC) has recommended the imposition of specific safeguard duty of P1,342 per metric ton on imported testliner boards saying the increased imports of this product has caused serious injury to the domestic industry.

This was contained in a report by the Tariff Commission on the petition filed by the domestic testliner board industry represented by United Pulp and Paper Co. Inc. (UPPC). The domestic industry has sought for the imposition of a definitive general safeguard action based on the country's Safeguard Measures Act and the WTO Agreement on Safeguards against testliner board imports from various countries."The measure shall be effective for three years starting September 16, 2010, the date when the provisional measure took effect," the Commission said in its report.The punitive duty was calculated by comparing the weighted average landed cost of imported testliner board with the weighted average domestic selling prices of the locally produced counterpart.Testliner boards are used in the manufacture of boxes used for packaging of general consumer products such as toiletries, noodles, canned goods, ceramic tiles, fruits, electronic appliances and other consumer products.Based on the TC report, UPPC accounted for 63 percent of the total domestic production of testliner board from 2004-2009. It also said that imports significantly increased in quantities, both in absolute terms and relative to domestic production from 2005 through 2008. Imports peaked in the first six months of 2010.Imports grew by 97% in 2006 and 27% in 2007. In 2008, imports grew by 53%, respectively. In the first half of 2010, import volumes have already surpassed, by 36%, the entire volume imported in 2008.The surge in imports is not only in absolute terms but also relative to the domestic industry's production volumes. …