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MANILA, Philippines - The Department of Trade and Industry (DTI) on Thursday reduced the safeguard duties on imported test-liner boards.
In a statement, the DTI said the duties on imported test-liner boards would go down to P1,274.90 per metric ton for the period April to June 12, and to P1,211.15 per metric ton for the period June 13 this year to June 14, 2013.
The safeguard measure, initially imposed last year, aims to help the domestic industry adjust to import competition.
As provided in Republic Act 8800, safeguard measures are permitted in cases of a surge of “like” or “directly competitive” import products affecting or threatening the domestic industry.
In July 2011, the DTI ordered definitive safeguard measure for three years to be brought down on the second and third years of implementation. The safeguard measure is subject to an annual review to determine if the duty can be further reduced.
Based on the Tariff Commission’s recommendation, P1,342.00 per metric ton was imposed during the first year of implementation.
“The domestic industry appears determined to compete, and has undertaken serious efforts to modernize and adjust,” Trade Undersecretary Adrian S. Cristobal Jr. said.
“The safeguard measure on imported test-liner boards increased domestic sales by 21 percent, capacity utilization rate by 13 percent, and helped improve its local production by 13 percent in 2011. Increasing domestic production means more jobs in the test-liner board industry and its allied industries,” he added.
During the implementation of the measure, the Tariff Commission monitors the adjustment plans of the industry.
As part of the review of the measure, the DTI requested inputs from the domestic industry, importers, exporters, and other concerned parties in September 2011. The agency reviewed the price movement of locally produced and imported test-liner boards as well.
During the review period, imports of test-liner boards from various countries exceeded the three percent threshold allowed by law.
The World Trade Organization Agreement on Safeguard Measures allows developing member countries like the Philippines to impose safeguard measures for up to 10 years.
Test-liner boards refer to the basic material, usually made of recycled or waste paper, used in producing corrugated boxes for the packaging of consumer products. The safeguard measures benefit the end-users of test-liner boards, including the consumers, since they are assured of better and wider range of products at competitive prices.
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