Local steel fabricators have asked the government to allow the importation of raw materials from Japan despite opposition from Global Steel Philippines Inc., citing the inferior quality and the limited volume of the country’s sole producer.
Members of the Filipino Galvanizers Institute Inc., in a letter to the Trade Department’s Bureau of Import Services, also called on the government to confirm if Global Steel’s plant in Iligan City was in commercial operation to merit tariff protection.
The group said in a letter dated June 24 to bureau director Luis Catibayan that Global Steel had blocked the application of one of the domestic galvanizers to import from Japan.
“The downstream industry has been unduly prejudiced by the undeserved tariff protection granted to GSPI… We believe government must not continue to abet a monopoly operated by a foreign-owned company at the expense of the domestic manufacturers,” the group said.
Group members who signed the letter were Oliver Silan of Galvaphil Inc.; Salvio Perez of Puyat Steel Corp.; Bienvenido Dulce of Sonic Steel Corp.; Redmond Lee of Tower Steel Corp.; and Arthur Florendo of Union Galvasteel Corp.
The group said Cebu-based galvanizer A. Chan sought approval to import cold rolled coils from Japan but Global Steel opposed the application, claiming that it was also producing the same product.
The galvanizers said the imports were permitted under the Japan-Philippines Economic Partnership Agreement treaty.
They said a Trade directive also allowed the importation of steel raw materials from Japan if the local maker failed to produce the same item or if it was unable to meet the quantity, quality, price and delivery requirements of the user.
“Importations under JPEPA must not be hampered and allowed to be blocked by GSPI who undoubtedly is not financially equipped to operate commercially,” said the group.
The directive states further that “importation of products that are locally produced may nevertheless be allowed if the local product in question does not meet the required quantity, quality, reasonable price and timely delivery.”
The bureau said Philippine imports of hot rolled coils last year hit 343,635 metric tons, or P11.049 billion, while imports of cold rolled coils amounted to 187,407 MT, or P7.84 billion. Global Steel supplied the local industry with 11,742 MT of cold rolled coils valued at nearly P503 million. –Elaine Ramos Alanguilan, Manila Standard Today
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