Trade imposes safeguard duties on HDPE imports

The Department of Trade and Industry imposed safeguard duties on imported high-density polyethylene pellets after the Tariff Commission ruled a possible injury to local manufacturer JG Summit Olefins Corp.

The DTI issued Department Administrative Order No. 22-13 on Sept. 30, imposing safeguard duties on imported HDPE resins for three consecutive years.

HDPE is a strong, multipurpose resin, used in consumer and industrial goods, such as tanks, pipes, industrial packaging, containers, bottles, healthcare articles, toys, tapes, films and fibers.

The agency said that for the first year of imposition, safeguard duties would amount to P1,338 per metric ton, P1,271/MT for the second year and P1,208/MT for the third year. The duties will be applied on HDPE classified under AHTN 2017 Code 3901.20.00.

The petrochemical industry lauded the decision, saying this would contribute to the government’s drive of ensuring long-term economic recovery.

“The DTI supporting the TC’s recommendation to apply safeguard duties on HDPE imports is an important step to protect the local petrochemical industry against the surge of cheap foreign resins entering the country. This decision shows the support of the government for the local manufacturing industries to ensure long-term viability especially in these challenging times,” said JGSOC president and chief executive Patrick Henry Go.

The TC said within the span of safeguards timeline, it expected the domestic petrochemical industry to deliver efficiency measures in line with the industry’s adjustment plans to enhance international competitiveness.

The plan includes adjustment to selling prices to absorb production costs and operating expenses and generate reasonable margins.