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Philippines Applies Higher Import Tariffs on Vietnam’s Cement

In Philippines, the demand for cement has increased when government of President Rodrigo Duterte pursue the "Build, Build, Build" in an effort to attract more foreign investment and create new jobs.

Philippines Applies Higher Import Tariffs on Vietnam’s Cement
Nhat Trung16:29 04/09/2019
Recently, as reported by the local media, Vietnam’s export of cements to the Philippines surges. Manila on Tuesday announced that Pilipino government plans to apply import taxes on cements from Vietnam.
Accordingly, the new import tax will be valid for three years, that was applied following earlier moves to slap provisional safeguard duties on ceramic and wall tiles, as well as on clear and tinted float glass.
In Philippines, the demand for cement has increased when government of President Rodrigo Duterte pursue the "Build, Build, Build" in an effort to attract more foreign investment and create new jobs.
Vietnam’s export of cement to Philippines has surged in recent years. In February 2018, Nhan Dan online reported that Vietnam's cement and clinker exports increased sharply in the first month of 2018, at over 100% in both volume and value, according to the General Department of Vietnam Customs.
Accordingly, the export of cement and clinker increased by 121% in volume and 112% in value over the same period last year, reaching 2.9 million tons, equivalent to US$101.12 million.
However, cement and clinker prices in January decreased 4.6% compared with December 2017, at an average of US$34.8 per ton.
Among the 12 major export markets for Vietnamese clinker and cement, exports to Bangladesh were the highest, accounting for 31.3% of the total, with over 909,109 tons.
Nikkei reported that a 250-peso ($4.8) duty will be imposed on every metric ton of cement imported in the first year, dropping to 225 pesos the following year and 200 in the third and final year, according the Philippines' Department of Trade and Industry. The measure, which will be reviewed annually, will take effect 15 days after the announcement.
The duty is lower than the 297 pesos per metric ton recommended by the Philippines' Tariff Commission last month.
Citing potential damage to its domestic cement sector, the Philippines last year launched a probe into the rise of imported cement, which surged to around 3 million metric tons in 2017 from 3,600 in 2013. Around 75% of the imports come from Vietnam, 18% from China, and 8% from Thailand, according to the trade department, also according to Nikkei.