The Department of Trade and Industry (DTI) has expanded safeguard duties on cement imports to include China and Indonesia, tightening protection for local manufacturers amid rising inbound shipments and persistent excess capacity in the domestic industry.
Under Department Administrative Order No. 25-15, the DTI amended its safeguard regime after determining that imports from both countries had exceeded the “de minimis” (minimum) threshold that previously exempted them from duties. The move follows a review showing China’s share of Philippine cement imports jumped from 11 percent in 2025 to 23 percent in the first quarter of 2026, while Indonesia’s share rose to 8 percent.
Starting upon the issuance of the corresponding Customs memorandum, cement imports from China and Indonesia will be subject to safeguard duties of P14 per 40-kilogram bag, or P349 per metric ton, during the first year of implementation.
The decision highlights growing concern over the impact of imports on local producers, who argue that surging foreign supply has depressed plant utilization despite substantial investments in domestic capacity.
The Cement Manufacturers Association of the Philippines (CeMAP) welcomed the move, saying the earlier exclusion of China and Indonesia weakened the effectiveness of the safeguard measure and gave imported cement an undue advantage.
“The Philippine cement industry continues to struggle with utilization rates of just 53 percent despite having an installed capacity of 53 million tons,” said CeMAP Executive Director Renato Baja.
Industry data showed domestic demand reached about 34 million tons in 2025, with imports accounting for 6 million tons. As a result, local production was limited to 28 million tons despite sufficient capacity to meet national requirements.
While Vietnam remains the dominant supplier, accounting for 79 percent of imports in 2025, the rapid rise of shipments from China and Indonesia prompted regulators to revisit the exemption list.
The DTI’s latest action underscores a broader balancing act: protecting local manufacturing and jobs while ensuring adequate supply for the country’s infrastructure and construction sectors.
