The Philippine Cement Importers Association on Tuesday expressed full support to the new policy of the Department of Trade and Industry addressing their complaint opposing the requirement for their importations to undergo another conformation procedure while exempting importations made by local manufacturers.
In a consultation meeting called by DTI Assistant Secretary Ernesto V. Perez, the Bureau of Philippine Standards presented the latest Department Administrative Order setting new quality and conformity certification procedures, including a pre-shipment test, another seven-day product testing upon arrival, and another verification test plus a 10-percent surety bond on top of the PS license requirement, “We are satisfied with the latest DTI proposal. Now, there is equal footing between importations of pure traders and manufacturers-importers,” PCIA executive director Dani Enriquez said.
“There are now many brands of cement in the country. It is good that the BPS is considering our proposal to include as requirement that every importation be covered by an affidavit of undertaking from the PCIA. The PCIA shall then compel importers to comply with DTI rules and regulations and certify authenticity of testing reports and import documentations which I think is where the DTI shall be needing some sort of assistance.”
The PCIA earlier pointed out the discriminatory effects of DAO 17-02/05 favoring importations made by local manufacturers over pure importers in violation of the key principles and obligations of the World Trade Organization where the Philippines is a member.
During the meeting, there was initially some resistance from local manufacturers over issues on consumer protection that the members of PCIA said were one-sided.
“The PCIA has the same concerns as what the local manufacturers are claiming when it comes to consumer welfare. If they still disagree with the DTI-proposed DAO and insist on procedures that they claim protect consumers, then I suggest that the same treatment be applied to all cement products whether they are imported or locally manufactured before they reach the consumer. I think that answers their concerns,” Enriquez said.
“As we have said before, no industry group can claim monopoly when it comes to consumer welfare. And we are in fact glad to see during the meeting that there are some local manufacturers who also support our pre-shipment testing proposal,” he added.
Enriquez said that with the new DAO, “I don’t think there will still be any chance for low-quality imported cement to reach the Philippine market, except maybe those that were illegally imported into the country. This is where the PCIA comes in once DTI agrees to our proposal for PCIA to augment their monitoring and enforcement operations.”
In the meantime, the PCIA is appealing to DTI to suspend DAO 17-02/05 and replace it with the new DAO presented by the BPS.
“The market is now affected by DAO 17-02/05. There have been reports of increases in cement prices ranging from P5.00 to P20.00 per bag. And there are complaints from end-consumers of inadequacy of supply,” Enriquez said.
“We believe the best way to address these problems is to suspend DAO 17-02/05 and just wait for the new DAO to be approved and signed. This I hope DTI would consider. Considering that BPS has already come up with a new DAO, I don’t see the logic in continuing a policy which has caused too much noise and division in the cement industry.”
