By Ayen Infante
06/30/2008 [ tribune.net.ph ]
The Cabinet-level Committee on Tariff and Related Matters (CTRM) is again considering to allow the entry of tariff-free imported cement to curve the continued increase of cement prices in the local market.
A top government official privy to the CTRM talks said the proposal was raised during its last meeting as an option to provide temporary relief to consumers.
The high price of local cement is still an ongoing concern that is now being reviewed in the CTRM that was last convened on June 18.
Duty imposed on cement coming from Association of Southeast Asian countries is currently at three percent, a rate that will continue until 2010, while cement imported outside of the Asean but from countries covered by the most favored nation (MFN) scheme carries a rate of five percent.
Apart from this, the CTRM is also considering imposing a strategy similar to a benchmarking mechanism applied on oil product prices based on the prevailing price of cement in major Asean cement-producing countries.
Such a scheme, however, may not be feasible since cement is not an internationally traded commodity. “One way, however, is through our trade offices based in Asean, to be used in extablishing benchmark prices,” the official said.
The source added the decision of the CTRM was in light of three resolutions in Congress that were meant to address the high prices of cement.
“We have to harmonize this study with the resolutions being undertaken by Congress,” he said.
On fiscal incentives that may be granted to cement projects, the official said the Department of Trade and Industry is keeping its hands open to include or not the industry in the Investment Priorities Plan.
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