The Trade Department has dismissed a petition filed by Puyat Steel Corp. that sought to invoke safeguard measures against imported galvanized iron and pre-painted galvanized iron sheets.
The Trade Department’s import division headed by Luis Catibayan said in a letter to the Philippine Iron and Steel Institute on Feb. 5, 2015 that Puyat’s petition was dismissed for lack of merit.
“The department ordered the dismissal of the safeguard measures investigation on the said products considering that the presence of serious injury alleged by the domestic industry cannot be established,” Catibayan said in the letter.
Trade Secretary Gregory Domingo in an order dated Feb 2, 2015 ordered the dismissal of the petition due to lack of evidence the GI and PPGI imported starting 2007 until August 2013 harmed the local industry.
The Trade Department said after a thorough review of the importation volume during the seven-year starting 2007, as mentioned in the petition, it found out that the increase cited in the petition did not harm the local GI and PPGI industry.
“The GI industry did not suffer an overall impairment in its operations. There were recorded increases in sales, production, capacity utilization, employment and productivity of the domestic industry,” the agency said.
It said the inventory was maintained at reasonable prices relative to production and sales, such that the selling prices were kept at levels that allowed for full recovery of costs.
The department said the petitioner, Puyat Steel, had shown robust operations during the period of increased imports while their raw material imports also rose.
It said Puyat Steel’s combined sales volume had been on an upward trend. “Their gross profits increased form 2011 to 2012 and the January to August 2013 level is almost 82 percent of 2012. Net profits were also recorded,” it said.
Puyat Steel filed the petition invoking safeguard measures against imported GI and PPGI sheets and coils from various countries on the ground that the importation had harmed the local steel industry.
It cited specific products for GI and PPGI that it said entered the Philippines in massive volume.
