DTI junks plea vs safeguard obligation on LLDPE

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MANILA, Philippines — The Division of Commerce and Business (DTI) has formally dismissed the petition to impose a safeguard measure or obligation on imported linear low-density polyethylene (LLDPE) pellets and granules.

In Division Administrative Order 22-05 signed by Commerce Secretary Ramon Lopez, the DTI mentioned “the applying for basic safeguard measures on the importation of LLDPE pellets and granules from varied nations…is hereby dismissed.”

LLDPE resin is utilized in meals, beverage, shopper merchandise and packaging.

The DTI’s order to dismiss the petition filed by Gokongwei-led JG Summit Olefins Corp. (JGSOC) follows the advice from the Tariff Fee (TC) to not impose safeguard duties on imports of LLDPE pellets and granules.

Based mostly on TC’s probe on the matter, it discovered there was no enhance in imports of LLDPE pellets and granules throughout the interval of investigation overlaying 2015 to June 2021.

Citing the TC, the DTI mentioned that as LLDPE pellets and granules weren’t being imported at greater portions whether or not absolute or relative to home manufacturing throughout the interval of investigation, “the dedication of significant harm or risk thereof, causation, and unexpected developments has change into moot and tutorial.”

Earlier, Lopez mentioned that pursuant to the choice of the Supreme Court docket on the Philcemcor case, the DTI is sure by the advice of the TC.

On this occasion, he mentioned the aggrieved occasion might file a petition for overview earlier than the Court docket of Tax Appeals below the Safeguards legislation.

JGSOC, the nation’s sole producer of LLDPE pellets and granules, filed the petition for safeguard measures on LLDPE imports based mostly on the declare that elevated imports of such harm the home trade.

Because the DTI discovered a causal hyperlink between elevated imports of LLDPE and critical harm to the native trade in its preliminary probe on the petition, it requested the TC to conduct a proper investigation on the matter final yr.

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