Việt Nam Trade Office warns on the Philippines' imposition of import tariffs on cement

Việt Nam Trade Office warns on the Philippines' imposition of import tariffs on cement

The imposition of provisional duties by the Philippine will have a considerable impact on Việt Nam’s cement exports.

Workers at a cement factory. — Photo kinhtedothi.vn

The Việt Nam Trade Office in the Philippines has advised Vietnamese exporters to actively cooperate in the investigation to avoid unfavourable outcomes, after the Philippines imposed tariffs on imported cement. 

Phùng Văn Thành, Trade Counselor at the Việt Nam Trade Office in the Philippines, said that during the preliminary investigation, the Philippine Department of Trade and Industry (DTI) identified 33 cement exporters supplying the Philippine market, including Vietnamese companies.

"The Philippine DTI sent questionnaires to these exporters, but only 9 out of 33 responded, including six Vietnamese exporters," he said. 

To minimise potential losses, Thành recommended that during the upcoming formal investigation, Vietnamese cement exporters should actively provide relevant information to the investigating authorities. This is crucial to prevent unfavourable decisions based on incomplete or pre-existing information.

"The core aspect of a safeguard investigation is to assess the severe injury suffered by the domestic industry due to imported cement,” he said. 

Therefore, Thành emphasised that it is necessary to have a representative from the cement industry to bring businesses to review collectively, provide information and have a common voice with the Philippine investigating agency in reviewing and analysing the actual impact.

On February 20, the Philippine Secretary of Trade and Industry issued order No. 25-01, imposing provisional safeguard duties of 400 pesos per tonne (approximately US$6.9) on two types of imported cement, to protect domestic cement production.

Specifically, the DTI initiated a safeguard investigation on certain imported cement products, including portland cement (AHNT Code 2523.29.90) and blended cement (AHNT Code 2523.90.00), based on the ASEAN Harmonised Tariff Nomenclature (AHNT).

The investigation covers imports of these cement types from 2019 to 2024. 

The preliminary investigation led to the imposition of provisional safeguard duties. These duties will remain in effect while the Philippine Tariff Commission conducts a formal investigation.

It will be imposed for 200 days from the date the Philippine Bureau of Customs issues the tariff order. The DTI has listed countries and territories exempt from these duties, but Việt Nam is not among them.

Vệt Nam holds the largest market share of imported cement in the Philippines. In 2024, cement exports to the Philippines were estimated at 7.2 million tonnes, accounting for 94.4 per cent.

Given these figures, the imposition of a provisional duty will have a considerable impact on Việt Nam’s cement exports. 

Bizhub