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The Department of Trade and Industry (DTI) has imposed a provisional anti-dumping duty on gypsum board imports from Thailand.
DTI Department Administrative Order (DAO) No. 24-10 Series of 2024, issued by Acting Secretary Cristina Roque on Nov. 5 and published on the agency website on Nov. 11, said the anti-dumping duty in the form of a cash bond will be imposed for four months, starting from the date of the issuance of a memorandum order by the Bureau of Customs.
In December last year, the DTI announced that it received a petition from Knauf Gypsum Philippines, Inc. for an anti-dumping duty on gypsum board which consists of a core of hardened extruded gypsum enclosed in a reinforcing layer of paper linerboard from Thailand.
The DTI said the petition alleged that imports of gypsum board from Thailand are being dumped in the country and is causing material injury to the domestic gypsum board industry.
According to DTI's DAO, the period of investigation (POI) for dumping was from January 2022 to May 2023 while the POI for injury was from 2019 to September 2023.
In a separate report, the DTI said the volume of dumped imports declined to 42,301 metric tons (MT) or 81 percent of the Philippine imports in 2021 to 25,590 MT or 55 percent of the total imports in 2022.
Volume of dumped imports, however, increased to 68 percent from January to May 2023.
The DTI added that while the market share of domestic products increased to 67 percent in 2022 from 30 percent in 2019, comparing the first quarters of 2023 from the same period in 2022 showed a decline to 58 percent from 66 percent.
"The industry has lost a substantial share of its market, with 30 percent captured by dumped imports from Thailand in the first three quarters of 2023," it said.
The DTI said continued price undercutting of the domestic industry also made domestic prices uncompetitive.
"The Department of Trade and Industry acting pursuant to Section 3 of RA 8752 (Anti-Dumping Act of 1999) and on the basis of the information available concluded that the imported gypsum board with thickness of 9mm and 12mm from Thailand are being dumped; by reason thereof, the dumped imports have caused material injury to the domestic gypsum board industry; and the imposition of provisional measure is necessary to prevent further material injury to the domestic industry," it added.
The DTI said the computed dumping margins for gypsum board per product model are 5.45 percent to 34.72 percent of export price for thickness of 9mm, and 4.65 percent to 33.81 percent of export price for thickness of 12mm during the POI.
A surety bond amounting to PHP500,000 will also be released to the petitioner.
The DTI said the report on the preliminary determination, including the records of the case, will be transmitted to the Tariff Commission for the conduct of a formal investigation to determine if all legal requirements for the application of a definitive anti-dumping duty has been met.