You are on page 1of 4

Giant SC Johnson Wins Katol Anti-Dumping Case MANILA, Philippines Multinational giant SC Johnson won the anti-dumping case

e filed by local mosquito coil producer Green Coil Industries Inc. after the Department of Trade and Industry (DTI) has ruled there was no dumping of this product into the Philippines to cause injury to the locally produced mosquito coil under the brand name "Katol." In a decision last August 20, 2010, DTI Secretary Gregory L. Domingo ordered the dismissal of the anti-dumping case filed by local mosquito coil producer Green Coil Industries Inc. against importer PT Johnson Home Hygiene Products and SC Johnson and Son Philippines. Domingo based his decision on the recommendation by the Tariff Commission, which conducted the anti-dumping investigation covering the period 2006-2009, to dismiss the case because the existence of dumping has not been established. The Tariff Commission has determined that the margin of dumping of the Indonesian-made mosquito coil is de minimis at 0.61 of the export price, which is below the de minimis threshold or less than 2 percent of export price. The imported mosquito coil is a like product of the locally produced product under the brand Katol of the Cebu-based Green Coil Industries. Section of the Tariff and Customs Code of the Philippines and Section 6 of its IRR of the AntiDumping Act of 1999, provides that, In case of a negative finding by the Commission, the Secretary shall issue, through the Secretary of Finance, after the lapse of the period for the petition to appeal to the Court of Tax Appeals, an Order for the Commissioner of Customs to immediately release the cash bond to the importer. All the parties concerned shall also be duly notified of the dismissal of the case. As a result, the DTI has also ordered the Bureau of Customs, through the Secretary of Finance, the immediate release of the cash bond to the importer. For its part, SC Johnson has maintained that the anti-dumping case was not supported by facts. It could be recalled the DTI, acting on the case filed by Green Coil conducted a preliminary investigation and based on that ordered the imposition of a provisional anti-dumping duty amounting to $0.40 or 40 percent of the export price of mosquito coils manufactured and exported to the Philippines by JHHP based on data provided by the DTIs Bureau of Import Services. The provisional anti-dumping duty, which was imposed in March this year, was good for four months. The DTI also endorsed the case last March 19, 2010, to the Tariff Commission for formal investigation on the case and determine if there is a merit for the imposition of a definitive antidumping duty.

Philippines Department of Trade & Industry Investigate Chinese Glass Manufacturers for Dumping Two Firms Accused of Predatory Pricing The Philippines Department of Trade and Industry will investigate two Chinese glass manufacturers--Shanghai Ta-Yuan Glass Co. Ltd. and Shanghai Cen Eagle International Trading Co. Ltd.--for dumping their products into the Philippine market. This is the second anti-dumping case being probed by the DTI (the first case is against Taiwan Cement Corp. of billionaire Jeffrey Koo) since the implementing rules and regulations for the new Anti-Dumping Law were released last month. Trade and Industry Secretary Manuel A. Roxas has ordered the Bureau of Import Services to initiate the proceedings versus the Chinese firms after receiving a complaint from local glass maker--Republic Asahi Glass Corp. Republic Asahi accused the two firms of "predatory pricing" to gain market share in the Philippines by selling their products at substantially lower prices than in the Mainland. The Chinese firms allegedly shipped in 17,366.77 metric tons of clear figured glass from January to December last year at a dumping margin (or difference between the export and home prices) of 6.7 percent to 45.3 percent. This is equivalent to a price discount of between $13.45 and $84.79 per metric ton. The DTI decided to pursue an anti-dumping case against the Chinese companies because their shipments accounted for nearly 30 percent of the total imports last year and are deemed damaging to the local industry. Imports are considered injurious to the domestic industry if they account for at least 2 percent of total shipments. The DTI has 60 days to wrap up its investigation and render its final recommendation on whether to slap a cash bond on subsequent exports of these companies and elevate the case to the Tariff Commission for further investigation.

Cement firms may lose anti-dumping case vs Taiwan firm Cement manufacturers may lose their anti-dumping case against Taiwan Cement Corp. due to their associations reported delay in submitting additional documents to the Bureau of Import Services, thegovernment agency which investigates and rules on anti-dumping cases. The Philippine Cement Manufacturers Corp. (Philcemcor), as far back as March 2, 2000, had filed an anti-dumping case against Taiwan Cement Corp. which is owned by businessman Jeffrey Kho. Philcemcor, an organization of 19 local cement manufacturers, however, decided last September 2000 to amend its anti-dumping case against Taiwan Cement. It wanted to include data to show that imports from Taiwan increased by 1,700 percent to 472,400 metric tons in the first half of 2000 from only 27,800 metric tons in the first half of 1999. The case against Taiwan Cement is the first test case under the Anti-Dumping Law passed in 1999. Philcemcor claimed that its members lost about P15 billion in potential revenues due to the unfair competition presented by the dumped cement. It estimates that the P15 billion would be on top of the P5.7 billion the cement companies lost in 1999 which was 63 percent higher than the P3.5-billion losses posted in 1998. However, the BIS is reportedly getting impatient with Philcemcors delay in the submission of additional data and documents to support its anti-dumping case against Taiwan Cement. BIS Director Alexander Arcilla has given Philcemcor until Friday, Jan. 6, to submit its antidumping petition against Taiwan Cement, warning that "if they fail to submit the necessary documents, then we have no petition to discuss." Arcilla pointed out that he had already given Philcemcor on earlier 90-day extension which has since lapsed. He said the BIS should have rendered a decision on the case last Sept. 22, 2000. If Philcemcor fails to beat the deadline to submit the additional data and documents, the BIS will make a decision based on the data and documents covering imports for 1999 only.

Anti-Dumping Cases in The Philippines

Alegria, Sanfrid Wyn D. TARN01B

You might also like