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THE
Ceramic Tile Manufacturers’ Association (CTMA) on
Tuesday urged the Department of Trade and Industry (DTI)
to approve the recommendation of the Tariff Commission
to extend the definitive safeguard duty on imported
tiles for another three years.
In a
press briefing in Makati City yesterday, CTMA president
Edison T. Co Seteng noted that the safeguard duty is
about to expire on January 12.
“The
safeguard duty is needed to ensure that the local
industry will remain competitive in light of the
increasing competition posed by manufacturers based in
China,”
said Co Seteng.
CTMA
noted that Tariff Commission has already recommended the
extension of the safeguard duty for another three years
in a letter to the trade department dated December 6,
2007.
If
approved, the safeguard duty would be pegged at P2 a
kilogram for imported tiles this year. This amount will
gradually decline by 2011. CTMA, however, did not say
the possible safeguard duty after three years.
The
Philippine government first imposed the tariff-rate
quota and the safeguard duty in 2002, after it
determined that the influx of imported ceramic tiles
from
China
has caused injury to local manufacturers.
Prior to
the lapse of the safeguard duty in 2002, trade
department approved a second extension of the definitive
safeguard duty beginning January 12, 2005.
For his
part, Federation of Philippine Industries (FPI)
president Jesus Arranza noted that despite the
imposition of the definitive safeguard duty, imported
tiles continue to flood the local market.
“The
growth in imports has been phenomenal, especially in
recent years,” said Arranza. For the period of 2004-06,
figures from CTMA show that imports from China grew at
an average annual rate of 104 percent.
Aside
from the extension of the safeguard duty, CTMA is also
calling on the government to help the industry find ways
to reduce its power costs. Power is considered as one of
the major costs incurred by tile manufacturers. |