MANILA - The Department of Trade and Industry (DTI) today said preliminary evidence points to an influx of newsprint imports, hence a ground to slap additional duties to protect the domestic industry.
“Based on DTI’s review of the evidence presented in the said petition, a prima facie case exists to justify the initiation of a preliminary safeguards investigation,” the agency said in a statement, referring to the petition for safeguard measures filed by Trust International Paper Corp (Tipco).
Tipco is the country’s lone producer of newsprint, a raw material in producing newspapers, books, magazines, notebooks, pad paper and wrappers.
Citing data submitted by the local monopoly, newsprint imports rose 792 percent to 26,356 metric tons (MT) in 2011 from 2,956 MT in 2007. During the January to August 2012 period, a record 31,462 MT of imported newsprint entered the country.
Majority of the newsprint imports in 2008 came from China and the UK. From 2009 to 2012, bulk of imports came from South Korea and the UK.
The DTI said the safeguard investigation on newsprint, which the Philippine government initiated last September 20, covers domestic production and importation from 2007 through August 2012.
“DTI has notified all interested parties and has required them to submit their reply and other evidence or information relevant to the said investigation. The investigation will make a preliminary determination whether the increasing volume of imported newsprint is causing serious injury to the local producer of newsprint,” the agency said.
Once the DTI determines that newsprint imports have indeed injured Tipco, the agency will forward the case to the Tariff Commission for a formal investigation.
The Philippines’ World Trade Organization (WTO) mission in Geneva earlier notified the trade body’s Committee on Safeguards of a safeguard investigation on newsprint, citing “serious injury to the local newsprint industry as indicated in their declining market share, production, sales, capacity utilization, productivity, profitability, price suppression, depression and undercutting.”
Covered by the investigation are newsprint in rolls or sheets weighing no more than 55 grams per square meter with Asean Harmonized Tariff Nomenclature (AHTN) Code 4801.00.10 as well as other newsprint with AHTN Code 4801.00.90. These products have most favored nation (MFN) rates of duty of seven percent. MFN rates refer to tariffs slapped on goods from outside Asean.
Additional safeguard duties may be put in place to provide a “seriously injured” domestic industry relief against imports, if the volume of fairly-traded, “like” or directly competitive imports exceed a trigger level or if their prices fall below a trigger price.
source: interaksyon.com
