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BANGKOK—Mariwasa-Siam
Ceramics Inc. said the influx of imported tiles and high
energy prices in the Philippines is already hurting
their business.
Mariwasa-Siam
president Surasak Kraiwitchaicharoeu said imported tiles
are eating into around 35 percent of their company sales
while energy costs account for as much as 40 percent of
production expenses.
The
company is among the signatories to the proposal of the
Ceramic Tile Manufacturers’ Association (CTMA) to extend
the definitive general safeguard measures for imported
tiles.
“It’s
something the government needs to act more quickly and
efficiently on. We need the extension because imported
tiles and high energy prices are already costing us,”
said Kraiwitchaicharoeu.
The CTMA
recently filed for an extension of the definitive
general safeguard measure with the Department of Trade
and Industry, a request that was forwarded to the Tariff
Commission.
The
request aims to extend the P2.15-per-kilogram safeguard
duty imposed on all imported tiles entering the
Philippines. If the extension for the safeguard duty is
not granted, by January 2008, the safeguard duty will
start to decrease starting at P1.80 per kilo as part of
the World Trade Organization (WTO) commitments of the
Philippines.
Kraiwitchaicharoeu said that if the extension is
granted, the P2.15-per-kilogram safeguard duty will be
kept until 2012. The Tariff Commission has not yet
decided on granting the extension.
According to a staff report from the Tariff Commission,
CTMA said the safeguard is necessary since imported
ceramic tiles remain a threat to the domestic industry.
The volume of imports increases as the amount of
safeguard duty decreases, and the market share of the
domestic industry also decreases as the amount of
safeguard measure decreases.
Further,
CTMA said that once the measure is terminated it would
jeopardize the industry’s adjustment plan. “CTMA
requests for a final extension of four years of the
definitive safeguard duty. The domestic industry is
asking for additional time to implement its adjustment
plan and make it globally competitive. Petitioner cites
the commission’s Monitoring Report to attest that the
domestic industry has been serious and has invested time
and resources in its adjustment plan.”
“CTMA
cites that an additional element of its adjustment plan
is a project to reduce the cost of energy using
alternative resources. And it expects to implement the
same on a commercial basis in the period of the last
extension applied for. A final extension would ensure
that it would be able to complete the same,” the report
added.
In
September, a preliminary conference was held at the
Tariff Commission with representatives of CTMA, counsel
for objector Golden Ocre Trading Corporation, Mariwasa-Siam,
Lepanto Ceramics Inc., DTI-Bureau of Import Services,
DTI-Construction Industry Authority of the Philippines,
Bureau of Customs, and representatives from the Embassy
of Australia and Embassy of Indonesia. |
