The review of the adjustment plan of the domestic manufacturers will be used by the DTI in determining the amount of additional duty that will be imposed on imported steel angle bars in the third year of the implementation of the safeguard measure.
“We have submitted our report to the DTI. The industry players are undertaking several remedial and cost-saving measures according to schedule,” TC Commissioner Edgardo Maralit told the BusinessMirror.
In September 2009 the DTI imposed a three-year safeguard measure and slapped an additional duty of P7,700 per metric ton (MT) of imported angle bars in the first year. This was reduced to P5,133 per MT starting April 2010.
The companies belonging to the Steel Angles, Shapes and Sections Manufacturers Association of the Philippines Inc. (Sassmapi) are hoping that for the third year, the reduction in the safeguard duty will not be higher than 5 percent for the scheme to be effective in aiding them.
Sassmapi said the industry benefited from the measure similar in 2009 when the importation of steel angle bars dropped dramatically to 1,888 MT and further to only 60 tons in 2010.
From only 154 MT in 2003, the import volume of steel angle bars went up to 31,847 MT in 2008 with an average annual growth rate of 391 percent.
The local production, on the other hand, shrunk to 37,727 MT in 2008 from 106,699 MT in 2005.
Lunar Steel, one of the three manufacturers that sought the safeguard measure, has allocated P65 million for its adjustment plans. It has embarked on ISO 9001 alignment in improving its system, processes and product.
By implementing the Quality Management System, Lunar Steel will be able to make its operations run more efficiently, improve communication at all levels and increase customer satisfaction. The standards cover quality, environmental friendliness, safety and reliability.
On education and information dissemination, Sassmapi engaged in a nationwide campaign that includes hardware store owners, distributors and contractors on consumer awareness on the safety and quality aspect of steel angle bars and the importance of Philippine National Standard on uncertified/substandard products in the market.
