According to Department of Trade and Industry (DTI) Philippines press release on January 11, 2023, pursuant to the letter dated October 24, 2022 of Benjamin Diokno, Secretary of Finance, relative to the letter dated September 30, 2022, from Alfredo E. Pascual, Secretary, Department of Trade and Industry (DTI), the DTI issued DTI DAO No. 22-13 s. of 2022 on the imposition of definitive general safeguard measures in the importation of High-Density Polyethylene (HDPE) pellets and granules under AHTN 2017 (Code 3901.20.00) from various countries, based on the findings and recommendation of the Tariff Commission (TC) through its formal investigation.
The Order provides for the following:
(a.) Imposition of definitive general safeguard duty in the amount of P1,338.00/MT for the first year, P1,271.00/MT for the second year and P1,208.00/MT for the third year of the implementation period, subject to regular review by the DTI.
b.) Imports originating from developing countries listed in Annex "A" covered by Rule 8.8 of the IRR of RA 8800 shall not be subject to the definitive general safeguard measure. The composition of the developing countries on the de minimis list may change based on a review of the most recent data available as part of the annual review which will be conducted by the DTI during the implementation period.
c.) The following products shall be excluded from the imposition of the general safeguard duty: (i) PE wax (AHTN 2017 subheading 3404.90.90; (ii) ethylene acrylic acid copolymer (AHTN 2017 subheading 3906.90.99); (iii) PP (AHTN 2017 subheadings 3902.10.30, 3902.10.40, and 3902.10.90); (iv) LDPE (AHTN 2017 subheadings 3901.10.19 and 3901.10.99); and (v) PET resin (AHTN 2017 subheading 3907.61.00). The different tariff classification indicates that these goods do not undergo either of the three established processes of polymerization, they have different product composition and physical properties and they are intended for different processing techniques and end- use/applications compared to HDPE pellets and granules classified under AHTN 2017 subheading 3901.20.00.
Imported HDPE grades specially made for use in the manufacture of wire and cable jackets/coatings, shall likewise, be excluded from the imposition of the general safeguard duty. The domestic polyethylene industry currently does not produce HDPE grades that can be used by the wire and cable industry. Also, HDPE used in rotational molding process application that are generally in powder form with a particle size of 500 microns or below. A melt index of 4.0g/10 min, and a density of 0.93-0.94g/cm³, shall be excluded from the imposition of the general safeguard duty. Currently, the domestic polyethylene industry does not produce HDPE grades with such specifications.
1.) Importers of HDPE originating from a country that is exempt from safeguard duty and those not covered by preferential tariffs shall submit a Certificate of Country of Origin (CO) issued by the authorized agency/office in the source country of manufacture subject to affixation of "Apostille" to the document or authenticated by the Philippine Embassy/Consulate General, as applicable.
The application of the definitive general safeguard measure shall be monitored and reviewed in accordance with Section 15 and 16 of RA 8800. The domestic HDPE industry is also directed to comply with its adjustment plan.
