As mentioned in Order No. 25-01, the Ministry of Industry and Trade of the Philippines has initiated a self-defense investigation into two types of cement imported from a number of countries, including portland cement ( portland cement) with code CS2523.29.90 and blended cement (blended cement) with code CS2523.90.00 according to the List of harmonious tariffs of Asean (AHNT - Asean Harmonized tariff Nomenclature).
The investigation was conducted for the two types of imported cement mentioned above in the period of 2019 - 2024.
The Philippine Ministry of Industry and Trade, based on Article 7 of Law No. 8800, Law on Trade Defense, based on the collected evidence and information provided by relevant parties, after a preliminary investigation, determined that there was a direct culprit relationship between the increased volume of imported cement types considered in the case and the actual damage to the domestic cement manufacturing industry.
Therefore, it has decided to apply a temporary self-defense tax rate of 400 pesos/ton or 16 pesos/bag of 40 kg for cement with code CSNT 2523.29.90 and CSNT Code 2523.90.00 during the official investigation of the Philippine Tax Commission.
Temporary self-defense tax will be applied within 200 days from the date the Philippine Customs Department issues the Tax Application Order. The Ministry of Industry and Trade lists the countries and territories exempted from temporary self-defense tax, but does not include Vietnam in the list of countries excluded.
In the Preliminary Investigation Report published by the Philippine Ministry of Industry and Trade, Vietnamese cement annually accounts for the largest market share of the total import of cement from the Philippines.
In 2019, 2020, 2021, 2022, 2023 and 2024, Vietnam's cement exports to the Philippine market were 4.23 million tons, 5.37 million tons, 6.38 million tons, 6.34 million tons, 6.87 million tons and 7.20 million tons, respectively, accounting for a market share of 79.41%, 91.41%, 92.59%, 94.76%, 98.09% and 94. 40% of the total amount of imported cement in the Philippines.
With the data stated in the report, the temporary self-defense tax imposed by the Philippine Ministry of Industry and Trade on imported cement will have a significant impact on Vietnam's cement exports.
Especially in the context that Vietnamese cement, lentils and mixed cement exported to the Philippine market are currently subject to anti-dumping taxes.
According to the provisions of the Philippine law on self-defense, the Philippine Ministry of Industry and Trade is the competent authority to conduct a preliminary investigation based on complaints from enterprises/business associations or initiate a preliminary investigation based on information, documents, and evidence collected or provided by relevant parties.
Based on the preliminary investigation results, the Ministry of Industry and Trade of the Philippines will issue an Order to apply temporary self-defense tax on products under review and transfer the dossier to the Tax Committee for official investigation.
The Tax Committee, based on the official investigation results, will propose whether to continue or abolish the application of self-defense tax, and if applicable, what is the official tax rate? Based on the proposal of the Tax Committee, the Ministry of Industry and Trade of the Philippines will issue a final decision.
