REPUBLIC OF THE PHILIPPINES
IN THE MATTER OF THE FORMAL
INVESTIGATION ON THE IMPOSITION
OF SAFEGUARD MEASURE AGAINST
IMPORTATIONS OF CERAMIC FLOOR
AND WALL TILES FROM VARIOUS COUNTRIES
(AHTN 2017 Subheading Nos. 6907.21.23,
6907.21.24, 6907.21.93, 6907.21.94,
6907.22.13, 6907.22.14, 6907.22.93,
6907.22.94, 6907.23.13, 6907.23.14,
6907.23.93, 6907.23.94, and 6907.40.92)
FOR SAFEGUARD MEASURE
(Republic Act (RA) No. 8800)
Investigation No. SG-2019-OC-Ceramic
LABAN KONSYUMER INC.
x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x INITIAL MEMORANDA/POSITION PAPER
Oppositor thru the undersigned President and counsel, respectfully submits as follows;
From the point of view of the consumers, any amount of safeguard duty is an added burden to the cost of goods sold. The safeguard duty partakes of the nature of additional tax on top of the internal revenue taxes on the cost of goods sold.
Thus, in the current investigation, we respectfully submit to the Tariff Commission issues that should form part of the investigation as these issues may mitigate, eliminate or limit the coverage of any amount of safeguard duty on ceramic floor and wall tiles.
1. Based on information gathered during the preliminary conference held on June 11, 2019, we request the Commission to validate whether local manufacturers produce only ceramic tiles with 6% and up water absorption, and allegedly, safeguard duty may be imposed.
2. Corollary, tiles of 0.5% to 6% water absorption are not manufactured in the country, and safeguard duty should not be imposed.
3. The investigation should include whether porcelain tiles with glazed and unglazed polishing are also not produced in the country.
4. The Commission should also consider the impact of the safeguard duty on the socialized and lower bracket housing project costs. The impact on prices of cheaper tiles of Php 3.00/kg can be anywhere of an increase of 15% per piece.
These are preliminary data:
Wall tile 20x 20 .36 kg Php 8.00 /pc = Php 1.08 sgd or up 13.5 %
Floor 20×20 .47 kg Php 10.00/pc= Php 1.41 sgd or up 14.1 %
Wall 30x 30 1.08kg Php 24.00/pc= Php 3.24 sgd up 13.5%
Floor 30×30 1.26 kg Php 28.00/pc=Php 3.78 sgd up 13.5 %
60×60 6.48 Kg Php 135.00/pc =Php 19.44 sgd up 14.4%
5. On the other hand, consider a box of Made in Spain ceramic tiles consisting of 9 pcs in a box with total weight of 19.4 kg costs Php 1,827.00 per box or Php 203.00 per pc. Applying the Php 3.00 per kilo safeguard duty is equivalent to Php 58.20
per box or Php 6.46 per pc. safeguard duty that may be added to the retail price. The increase per box is 3.18 % or 1.56% per piece, much lower than cheaper tiles.
6. It appears from these random and sample prices that the Commission should look into the reasonableness of a uniform pesos per kilo safeguard duty on tiles, without considering different classes as well as uses and users of the product, including its impact on the costs of socialized and lower bracket housing projects.
7. There is legal basis for the above issues as Section 5 of Republic Act No.8800 states that in the application of general safeguard measures for non-agricultural products, the Secretary shall first establish that the application of such safeguard duty will be in the public interest.
Quezon City, June 19, 2019.
ATTY. VICTORIO MARIO A. DIMAGIBA, AB, LLB, LLM
No. 5 Elgin Street, Brgy. Fairview, Quezon City 1118
Roll of Atty. No. 24285
PTR No. 7446842, Jan. 11, 2019
IBP No. AR 4719174, Jan 11, 2019
MCLE 5 000692, April 19, 2019
MCLE 6 compliance certificate under process
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