Philippines Trade Department extended for another four years the protective tariff against imported steel angle bars with an annual reduction rate of 5 percent until the fourth year to give local manufacturers time to adjust to competition.
Trade, on the recommendation of the Tariff Commission, imposed a tariff of P3,345 per metric ton against imported steel angle bars on the first year starting March 16, 2015 to March 17, 2016; P3,178 per MT on the second year from March 18, 2016 to March 19, 2017; P3,019 per MT on the third year from March 20, 2017 to March 21, 2018; and P2,868 per MT from March 22, 2018 to March 23, 2019.
The department said it reserved the right to review and modify the amount if found necessary.
The order also imposes that same measure on imported unequal leg angle bars. Marine grade steel angle bats, however, are excluded from the definitive general safeguard measure.
The Trade Department issued the order in response to a petition filed by the Steel Angles, Shapes and Section Manufacturers Association of the Philippines for a final extension of the safeguard measures on imported steel angle bars. The group, composed of Lunar Steel Philippines, Maxima Steel Mills Corp and 21st Century Steel Mill Inc, claimed the safeguard measures was necessary to prevent or remedy the serious injury caused by imported steel angle bars to the domestic producers and give them time to build their competitiveness.
The Tariff Commission noted that while the combined output of SASSMAPI members accounted for a major proportion of the total domestic production of steel angle bars, there was still a significant increase in the importation of the same product in the last two years. An investigation conducted by the commission showed that the termination of the safeguard duty would make it difficult for the domestic industry to price local products at a competitive level and erode the positive gains made by Philippine companies in adjusting to competition.
The commission said the continuation of safeguard measures on steel angle bars would eventually redound to more affordable prices for the public, adding local companies had introduced reforms in preparation for the inevitable entry of major imported commodities tax-free under the Asean economic integration.
source: Manila Standard |
