The Tariff Commission has terminated its formal investigation on the imported glass products and ruled against the imposition of definitive general safeguard measure on the importations of reflective, tinted and clear float glass after determining that importation did not cause serious injury nor will pose a serious threat to the domestic industry.

In reversing an earlier preliminary determination by the Department of Trade and Industry, TC Chairperson Marilou P. Mendoza said a decision issued on June 30, 2020: “Considering the negative determination of the elements of serious injury and threat thereof, the Commission hereby terminates its formal investigation and recommends that no definitive general safeguard measure be imposed on importations of reflective, tinted and clear float glass falling under AHTN 2017 Subheading No. 7005.10.90, 7005.21.90 and 7005.29.90.”

 The TC Final Report concludes that there is a sole float glass manufacturer in the Philippines and the domestic industry requirement under Section 4 (f) of RA No. 8800 or the Safeguard Measures Act has been satisfied.

During the period of investigation, TC said that clear, tinted and reflective float glass are being imported into the Philippines in increased quantities, both in absolute terms and relative to domestic product. The increases in the volumes of imports starting in 2018 are considered recent, sudden, sharp, and of such magnitude that can be deemed significant.

But TC said the despite the deterioration in several factors such as a market shares, profitability of clear float glass operations, inventory levels of tinted (bronze) float glass), there was no significant overall impairment in the position of the domestic industry during the period of investigation that constitutes serious injury in accordance with RA No. 8800.

TC further said there is no likelihood of continued increase of imports in the near future would lead to imminent serious injury and significant overall impairment to the position of the domestic float glass industry.

 “Causation has become moot and academic in view of the negative determination of the elements of serious injury and threat thereof to the domestic float glass industry,” the decision stated.

In August last year, the DTI slapped provisional safeguard duties on clear and tinted float glass to mitigate the injury caused by increased imports to the domestic industry.

DTI Secretary Ramon Lopez imposed a provisional safeguard measures in the form of a cash bond amounting to P2,552 per metric ton (MT) for clear float glass and P2,835 per MT for tinted float glass as well as reflective glass would be imposed for a period of 200 days.

“The Department, acting under Section 7 of RA (Republic Act) 8800, the Safeguard Measures Act, found after preliminary determination that increased imports of the products under consideration have caused serious injury to the domestic industry, particularly in terms of declining market share, domestic sales, capacity utilization, production, employment, profitability and increased inventories,” he said.

“Landed costs of imports were found to be lower than the ex-plant prices of the domestic product,” he added. The DTI’s preliminary determination of serious injury to the domestic market was based on its preliminary probe on the petition filed by the sole maker of float glass in the country, Pioneer Float Glass Manufacturing Inc.