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The Philippine Department of Trade and Industry (DTI) has officially initiated a safeguard investigation on imported corrugated board, under Section 6 of the Philippine Safeguard Measures Act.
Case Information
- Product under investigation: Corrugated board (HS codes: 4805.19.10, 4805.19.90, 4805.12.00).
- This product is widely used in packaging and storage to protect goods during transport.
- Petitioner: Philippine Pulp and Paper Manufacturers Association (Pulpapel).
- Investigation period: 2019 – 2023.
Allegations by the Investigating Authority
DTI claims that during the investigation period, imports of corrugated board into the Philippines increased significantly, both in absolute and relative terms, causing serious injury to the domestic industry. The alleged indicators of injury include:
- Declining market share, revenue, and profits.
- Price suppression and rising inventory levels.
- Reduced capacity utilization and labor productivity.
- Increased production costs.
Additionally, DTI argues that excessive investment in production capacity beyond market demand—especially during the COVID-19 pandemic—was an unforeseen development that led to increased imports.
In its initiation report, DTI listed the Top 10 largest exporters from 2019 – 2023, including two Vietnamese companies.
Public Interest Consideration
Under Section 5 of the Philippine Safeguard Measures Act, DTI must assess public interest before imposing a safeguard measure. Key factors include:
- Political and economic impact – Will the measure create a political or economic crisis?
- Domestic supply availability – Will it lead to a shortage of supply in the local market?
If DTI determines that a safeguard measure contradicts public interest, it will not be imposed.
Recommendations for Vietnamese Exporters
The Trade Remedies Authority of Vietnam (TRAV) advises exporters to:
- Carefully review the case details and analyze factors that could impact public interest.
- Submit comments on key issues such as injury claims, causation, and unforeseen developments to argue against safeguard measures on Vietnamese exports.
- Monitor updates from DTI and TRAV to stay informed.
- Fully cooperate with DTI, especially in responding to the investigation questionnaire.
- Work closely with TRAV for timely support and guidance.
To protect their legitimate interests, manufacturers and exporters should familiarize themselves with the procedure and actively contact Vietnamese law firms specializing in anti-dumping and trade remedy for timely assistance.
View the official document here.
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