Cement, wheat still duty-free

The technical level of the Committee on Tariff and Related Matters has endorsed the extension of the zero duties on cement and food wheat imports for another six months in a bid to lower prices of the commodities.

Trade Senior Undersecretary Thomas Aquino, chairman of the technical level committee, said yesterday that “no new and strong arguments were presented to change the present policy” on cement and food wheat imports.

Tariff rates on Portland cement imported from Asean countries is pegged at 3 percent, while those shipped from elsewhere are slapped 5 percent.

A source from the technical level committee said lifting the duties on cement imports did not hurt government revenues because of minimal shipments over the last six months.

Only Topway Builders Inc. brought in 10,000 50-kilogram bags of imported Portland cement since the tariff on cement imports were lifted in November last year.

Food grade wheat imports from non-Asean countries, meanwhile, carry a tariff of 5 percent, while those obtained from within Asean are slapped a 3-percent duty.

Wheat prices in the global market surged last year, prompting local flour millers to increase prices, resulting in more expensive bread products.

The government, in an effort to give industries cheaper alternative to locally produced flour and cement, lifted the duties on shipments of these commodities last year.

The technical level committee decided in its meeting Tuesday to revert the tariff on feed grade wheat from zero to 7 percent.

Aquino said the move was an encouraging signal to corn farmers to improve harvest and to agricultural authorities to assist feed millers in securing corn supply in the second semester.

A source from the committee said the tariff on feed wheat was lowered to zero late last year to bring down the prices of imports and reduce the production cost of feeds.

This time, the source, said the technical level had to revert the tariff to 7 percent to support the industry amid indications of bumper corn harvest.

The source said Customs people must be able to differentiate between food grade wheat, which will come in duty-free, and feed wheat, which will be charged 7 percent duty to avoid technical smuggling.

The Cabinet-level Committee on Tariff and Related Matters will have to formally endorse the recommendation of the technical level to Malacañang, which will sign an executive order to implement it.

The order from Malacañang extending the zero duties on cement and food wheat and reverting to 7 percent the duty on feed grade wheat must be signed before Congress resumes session on July 27. –Elaine Ramos Alanguilan, Manila Standard Today