Connect with us

Hi, what are you looking for?

News

Safeguard duties sought on imported resins

THE local petrochemical industry is seeking government protection through safeguard duties on imported resins used for the production of plastic goods.

In a statement on Thursday, JG Summit Olefins Corp. (JGSOC) said that along with the local petrochemical industry, they are hoping that the government can protect and support Philippine manufacturers from “unfair foreign competition” amid the reported surged in the import volume of high-density polyethylene (HDPE) and linear low-density polyethylene (LLDPE).

“The duties are being requested to safeguard the local manufacturing industry. Historically, HDPE and LLDPE imports tend to undercut the prices of the domestic industry,” the company said.

“HDPE is used in consumer and industrial packaging, while LLDPE is used for laminated films and general-purpose bags. Within the ASEAN, both raw materials are charged zero tariffs,” it added.

In September last year, the Tariff Commission began its investigation on the imposition of a safeguard duty after getting notification from the Trade department regarding JGSOC’s petition.

“JGSOC claimed in its filing of the safeguard measures petition, that the volume of HDPE and LLDPE — key raw materials used in many consumer products — being imported into the country in recent years were in quantities that are substantial to cause serious injury to the local petrochemical industry,” the company said.

Citing the Indian government as an example, JGSOC said India is expected to impose anti-dumping duties (ADD) on LDPE imports from Saudi Arabia, Singapore, Thailand and the US. 

“The country’s Ministry of Commerce and Industry said the ADD to be levied are commensurate to the estimated damage incurred on sole domestic LDPE producer Reliance Industries, Ltd., between the years 2016-2017 and 2018-2019. The ADD was fixed between US$17.05 and US$216.76 per ton on various producers and suppliers from said countries,” the company said.

“Unchecked imports can disable the ability of local petrochemical producers from continuing operations, and corrode domestic self-sufficiency. If left uncorrected, the backlash will inevitably lead to unemployment and income loss for thousands of Filipinos who make their living directly and indirectly from the industry,” it added.

On Jan. 1 this year, JG Summit Petrochemical Corp. and JG Summit Olefins Corp. announced that they had merged into JGSOC. In a summary report released by the Tariff Commission on its website dated May 23, the commission said it recommends “no definitive general safeguard measure be imposed on the importations of the LLDPE pellets and granules subject to this investigation.”

“There was no increase in imports of LLDPE pellets and granules, both in absolute terms and relative to domestic production, during the period of investigation from 2015 to June 2021,” the commission’s report said.

“Since it has been established that LLDPE pellets and granules were not imported in increased quantities (whether absolute or relative to domestic production) during the period of investigation, the determination of serious injury or threat thereof, causation, and unforeseen developments has become moot and academic,” it added.

The Tariff Commission has yet to release its summary report for the petition of safeguard measures against HDPE pellets and granules imports. — Revin Mikhael D. Ochave

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

News

BW FILE PHOTO THE PESO rebounded versus the dollar on Thursday, returning to the P54 level, on lower global oil prices and as the...

News

REUTERS STOCKS declined further on Thursday as the Bangko Sentral ng Pilipinas (BSP) said headline inflation could have reached an almost four-year high in...

News

FERDINAND “Bongbong” Marcos, Jr. took his oath of office as the 17th president of the Philippines before Chief Justice Alexander Gesmundo at the National...

News

PHILIPPINE STAR/ WALTER BOLLOZOS By Arjay L. Balinbin, Senior Reporter A TRANSPORT group said on Thursday that the increase in the minimum fare for...

News

PHILIPPINE STAR FILE PHOTO FORMER Camariñes Sur Rep. Rolando “Nonoy” G. Andaya, Jr. passed away on June 30, his family announced. He was 53....

News

PHILIPPINE STAR/ WALTER BOLLOZOS OUTGOING Presidential Adviser for Entrepreneurship Jose Ma. “Joey” A. Concepcion III is recommending a halt to the government’s procurement of...

You May Also Like

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Financial Advisors

The healthcare ecosystem is one that has thrived on the cusp of scientific progress, benefitting enormously from the winds of change in the technological...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.