Business Mirror reported that local manufacturers have asked the government to look into the alleged misdeclaration committed by steel importer Unicorn Metal Corporation in its importation in August 2012 amounting to PHP 81.44 million.
In a letter of complaint sent to Mr Luis M Catibayan, director of the Department of Trade and Industry, the Philippine Iron and Steel Institute said that Unicorn Metal misdeclared some 3,072 tonnes of steel billets as hot rolled square bars.
PISI added that the shipment was imported from Burwill Resources Limited in Changsu and arrived on August 15th 2012 at the Harbor Centre Port Terminal Inc, owned by businessman Mr Reghis Romero.
Mr Catibayan wrote Biazon that "The PISI alleges collusion between the exporter and the importer and that said shipment are actually semi-finished steel billets the input material in producing bars and which entitle the Chinese exporter to a tax rebate of up to 17%."
PISI said that square bars are actually semi finished steel billets but since they were imported as finished products, the Chinese exporters were entitled to tax rebates, which will not reflect the true value of the imported commodity.
Mr Roberto M Cola president of PISI earlier wrote Trade Secretary Mr Gregory Domingo complaining about the unfair trade practice allegedly through the collusion between Philippine importers and Chinese exporters resulting in the importation of finished products at prices lower than the cost of the input material.
Mr Cola said in his letter to Mr Domingo that "While the matter should normally be the concern of the Bureau of Customs, PISI decided to bring the issue to the Department of Trade and Industry because of the circumstances surrounding the shipment."
Copies of Mr Cola's letter were also forwarded to President Mr Aquino, Finance Secretary Mr Cesar Purisima and Mr Adrian Cristobal Jr, trade undersecretary for industry development and trade policy.
Mr Cola said aside from the unfair trade practice, the imported products were sourced from Chinese steel mills of questionable quality and reputation. He added that "There is a high probability that the properties of these steel products that will ultimately be used as reinforcement for buildings and infrastructures do not meet our Philippine National Standards."
Based on research done by the local steel industry, at least 13 major construction projects have collapsed in China over the past year.
PISI warned the government that the continued importation of similar Chinese products would lead to the collapse of the legitimate local steel industry. Talks circulating in the industry estimate that 20,000 to 30,000 tonnes of square bars from China have already been booked and due to arrive within this month until November 2012.
PISI's letter said that "The influx of cheap, uncertified and illegal steel goods from China affects the livelihood of the thousands employed due to the manufacture of steel."
The collapse of the local steel making industry would, in turn, lead to the loss of investor confidence and will put at risk the billions of pesos already in the pipeline for the growth of the local steel industry.
PISI, the umbrella organization of steel industry associations and companies, is in the forefront of the fight to protect the local steel industry from unfair trade practices.
Source - Business Mirror
(www.steelguru.com)
