Philippines has completed its formal investigation into the importation of Ordinary Portland Cement (OPC) Type 1 and blended cement and recommended the imposition of final safeguard tariffs to counter the severe injury suffered by the domestic industry as a result of the surge in imports. The report was released on September 30, 2025, after the DTI initiated its own investigation under the Safeguards Act (Republic Act 8800).
The DTI initiated a preliminary safeguards investigation on 28 October 2024 and found that there was prima facie evidence that cement imports had caused harm to local manufacturers. In February 2025, the DTI imposed a temporary safeguard tariff of 400 pesos (approximately US $6.88) per ton and 16 pesos per 40 kg bag for 200 days on imported cement, pursuant to Department Executive Order No.25-01. Subsequently, the case was transferred to the TC for full investigation on February 25, 2025. The
TC survey covers the period from 2019 to December 2024 and includes data verification, factory inspections and public hearings with local producers, importers, exporters and government agencies. The survey found that cement imports increased sharply after the expiration of safeguards implemented before the end of 2022. Imports not affected by previous tariffs rose 460% to 5.45 million tonnes in 2023 and another 14% to 6.2 million tonnes in 2024. By 2024, total imports will reach 7.55 million tons, accounting for about 45% of domestic production. This sudden and significant surge in imports displaced locally produced cement. The market share of the
domestic industry has dropped from 95% in 2022 to 72% in 2024, and the capacity utilization rate has dropped below 60%. Sales, production and profitability have declined as local producers are forced to compete with low-priced imports, often selling below cost. This weakens their financial situation, reduces employment opportunities and limits investment in modernization and sustainability.
The TC concluded that the decline constituted serious damage and was directly caused by the increase in imports. Although high electricity and transportation costs also contributed to the losses, these factors were secondary to the surge in imports.
The Commission recommended a final safeguard duty of P349 per ton (P14 per 40 kg bag) on imports of OPC Type 1 and blended cement for a period of three years. The tariff corresponds to the price gap between imported cement and locally produced cement in 2024.
The measure is intended to provide temporary relief to local manufacturers while they execute adjustment programs to improve efficiency, energy use, and competitiveness. Under the de minimis rule, imports from smaller developing countries and regions such as Indonesia, Pakistan, Taiwan and Thailand will be exempted.
According to TC, the safeguard will restore fair competition by mitigating price distortions without restricting supply. The measure is expected to stabilize employment, encourage reinvestment in domestic production and strengthen links with the local mining, logistics and construction industries.
The measure will be reviewed periodically to ensure that it remains necessary and proportionate. Once conditions return to normal, tariffs will be gradually reduced in accordance with the WTO Agreement on Safeguards.
The TC concluded that the rapid import surge since 2023 has caused severe damage to the Philippine cement industry. The final decision now rests with the Minister of Trade and Industry, who must act within 15 days of receiving the TC report.