Philippines

Cement

The following communication, dated and received on 15 December 2025, is being circulated at the request of the delegation of the Philippines.[1]

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Further to _G/SG/N/7/PHL/14 - _G/SG/N/8/PHL/16 - _G/SG/N/11/PHL/17 dated 26 February 2025 and pursuant to Article 12 and Article 9 of the WTO Agreement on Safeguards, the Permanent Mission of the Philippines to the WTO hereby notifies the Committee on Safeguards that a decision to apply a definitive safeguard measure on the importation of Ordinary Portland Cement (OPC) and Blended Cement from various countries has been made.

1.     Provide evidence, citing relevant data and the applicable period of investigation of serious injury or threat thereof caused by increased imports.

The surge in imports of cement (OPC Type 1 and blended cement), which commenced in 2023, directly caused the deterioration in the overall position of the domestic cement industry in 2023 and 2024. In particular, increased volumes of cement imports by traders prevented the domestic industry from improving its performance.

The decline in the domestic cement industry's performance due to the surge in imports of subject cement products by traders starting in 2023 was evidenced by the following:

(i)      Imported cement strengthened its market presence during the period of import surge. From only 5% in 2022, the share of "trade remedy-free imports" (i.e., imports not already subject to anti‑dumping duties) spiralled to 24% in 2023 and further to 28% in 2024 even though demand was generally steady. Since imports cornered growing shares in a stable market, the domestic cement industry's market position consequently deteriorated to a low of 72% in 2024.

(ii)     Due to the influx of cement imports in 2023 and 2024 despite a stable market environment, domestic sales and production of the local cement industry were curtailed and thus shrank to their lowest levels.

(iii)    Although the domestic cement industry installed additional capacities in 2020 in anticipation of higher demand in the future, the surge in imports in the final two years of the period of investigation (POI), which displaced domestic sales since demand had not grown, forced the industry to scale back on production, causing utilization rates to fall below 60% for the first time.

(iv)    While the local cement industry was the dominant player in the domestic cement market, this was possible only because of the pricing strategy it implemented (e.g., selling below cost to produce and sell) to tackle price undercutting of cement imports by traders throughout the POI. Said pricing strategy proved costly as it caused a financial turnaround to significant losses from operations. Operational losses hinder the industry's ability to deliver adequate shareholder returns, hence undermining its ability to raise capital for further expansion, modernization, and long-term sustainability.

2.     Provide information on whether there is an absolute increase in imports or an increase in imports relative to domestic production (please see also Article 2.1 for the context).

Ordinary Portland Cement and Blended Cement is being imported into the Philippines in increased quantities, both in absolute terms and relative to domestic production, starting in 2023. The increase in the volume of imports was recent, sudden, sharp, and significant. 

Following the lifting of the imposition of the safeguard duties on cement (Type 1 and Type 1P) in October 2022, the volume of importations of the cement products covered in this investigation (OPC Type 1 and blended cement) that were not subject to the ongoing imposition of anti-dumping duties on cement (Type 1 and Type 1P) imported from Viet Nam surged to 5.45 million MT, or by 460%, in 2023. The following year, these imports increased by another 14% to 6.20 million MT. Total imports of cement (whether imposed with anti-dumping duties or not) peaked at 7.55 million MT in 2024.

The movements in the shares of imports relative to production confirm that increased importations commenced in 2023. Excluding imports already subject to anti-dumping duties, the share of cement imports to domestic cement production hiked to 32% in 2023 and further to 37% in 2024 when safeguard duties were no longer in effect, from only 5% in 2022. The share of imports of cement (whether imposed with anti-dumping duties or not) reached a highest level of 45% in 2024.

3.     Provide the precise description of the product involved.

Cement

Ordinary Portland Cement under ASEAN Harmonized Tariff Nomenclature (AHTN) Code 2523.29.90 and Blended Cement under AHTN Code 2523.90.00.

HS code(s): 2523.29.90, 2523.90.00

4.     If the final measure replaces a provisional measure, or if a final measure is extended, a Member is encouraged to provide a written description of any part of the imported product that will no longer be subject to the measure and the Harmonized System numbers under which it enters at least at a 6-digit level, and at a sub-national level (e.g., 8-digit, 9-digit or 10-digit level) if practicable.

5.     Provide precise description of the proposed measure.

Tariff Increase - Specific

The Order provides for the imposition of definitive general safeguard measure in the amount of PHP14.00/40kg bag or PHP349.00/MT for the first year of the implementation period. The amount of the measure shall be subject to regular review to give the Department of Trade and Industry (DTI) the opportunity to modify the amount of the duty, if necessary.

6.     Provide proposed date of introduction of the measure.

The Order shall take effect upon the issuance of the relevant Customs Memorandum Order (CMO) or Customs Memorandum Circular (CMC) by the Bureau of Customs. The Order signed by the Secretary of DTI was published in two (2) newspapers of general circulation on 21 October 2025.

7.     Provide expected duration of the measure.

The safeguard measure shall be imposed on imported Ordinary Portland Cement and Blended Cement from various countries for a period of three (3) years.

8.     For a measure with a duration of more than three years, provide the proposed date for the review (under Article 7.4) to be held not later than the mid-term of the measure, if such a date for the review has already been scheduled.

N/A

9.     If the expected duration is over one year, provide expected timetable for progressive liberalization of the measure.

The three-year imposition period of the definitive general safeguard measure is from 2025 to 2028. The imposition will take place upon the Bureau of Customs' issuance of the Customs Memorandum Circular/Order. The amount or rate of the measure shall be subject to regular review to give DTI the opportunity to modify the amount of the duty, if necessary.

10.   The major exporting Members of imports of the product involved.

China; Indonesia; Japan; Viet Nam

11.   Specify the developing countries to which the measure is not applied under Article 9.1 of the Agreement on Safeguards, and the import shares of these countries individually and collectively.

Afghanistan; Albania; Algeria; American Samoa; Angola; Anguilla; Antigua and Barbuda; Argentina; Armenia; Aruba, the Netherlands with respect to; Azerbaijan; Bahamas; Bahrain, Kingdom of; Bangladesh; Barbados; Belarus; Belize; Benin; Bermuda; Bhutan; Bolivia, Plurinational State of; Bosnia and Herzegovina; Botswana; Brazil; British Indian Ocean Territory; Brunei Darussalam; Bulgaria; Burkina Faso; Burundi; Cabo Verde; Cambodia; Cameroon; Cayman Islands; Central African Republic; Chad; China; Christmas Island; Cocos (Keeling) Islands; Colombia; Comoros; Congo; Cook Islands; Costa Rica; Côte d'Ivoire; Croatia; Cuba; Cyprus; Democratic Republic of the Congo; Djibouti; Dominica; Dominican Republic; Ecuador; Egypt; El Salvador; Equatorial Guinea; Eritrea; Eswatini; Ethiopia; Falkland Islands (Islas Malvinas); Fiji; French Guiana; French Polynesia; Gabon; The Gambia; Georgia; Ghana; Greenland; Grenada; Guadeloupe; Guam; Guatemala; Guinea; Guinea-Bissau; Guyana; Haiti; Honduras; Hong Kong, China; India; Indonesia; Iran; Iraq; Jamaica; Johnston Island; Jordan; Kazakhstan; Kenya; Kiribati; Korea, Democratic People's Republic of; Kuwait, the State of; Kyrgyz Republic; Lao People's Democratic Republic; Lebanese Republic; Lesotho; Liberia; Libya; Macao, China; Madagascar; Malawi; Malaysia; Maldives; Mali; Malta; Marshall Islands; Martinique; Mauritania; Mauritius; Mexico; Micronesia, Federated States of; Midway Islands; Moldova, Republic of; Mongolia; Montserrat; Morocco; Mozambique; Myanmar; Namibia; Nauru; Nepal; Netherlands Antilles (incl. Aruba); New Caledonia; Nicaragua; Niger; Nigeria; Niue; Norfolk Island; North Macedonia; Northern Mariana Islands; Oman; Pakistan; Palau; Panama; Papua New Guinea; Paraguay; Peru; Pitcairn; Puerto Rico; Qatar; Reunion; Romania; Russian Federation; Rwanda; British Overseas Territory of Saint Helena, Ascension and Tristan da Cunha; Saint Kitts and Nevis; Saint Lucia; Saint Pierre and Miquelon; Saint Vincent and the Grenadines; Samoa; Sao Tomé and Principe; Saudi Arabia, Kingdom of; Senegal; Seychelles; Sierra Leone; Singapore; Solomon Islands; Somalia; South Africa; Sri Lanka; Sudan; Suriname; Syrian Arab Republic; Chinese Taipei; Tajikistan; Tanzania; Thailand; Timor-Leste; Togo; Tokelau; Tonga; Trinidad and Tobago; Tunisia; Türkiye; Turkmenistan; Turks and Caicos Islands; Tuvalu; Uganda; Ukraine; United Arab Emirates; Uruguay; Uzbekistan; Vanuatu; Venezuela, Bolivarian Republic of; Virgin Islands, British; Virgin Islands, US; Wake Island; Wallis and Futuna Islands; West Bank and Gaza; Yemen; Zambia; Zimbabwe.

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