|
| |
REPORT OF
FINDINGS ON
THE ANTI-DUMPING PROTEST AGAINST THE
IMPORTATION OF CLEAR FIGURED GLASS FROM
THE PEOPLE'S REPUBLIC OF CHINA
(HS Heading Nos. 7003.19 90)
UNDER SECTION 301 OF THE TARIFF AND CUSTOMS CODE,
AS AMENDED
Anti-Dumping Investigation No. 00-01
(Public Version)
===============================================================
INTRODUCTION
1. The
Anti-Dumping Protest
On 27 June 2000, Republic Asahi Glass Corporation (RAGC) filed with the
Department of Trade and Industry - Bureau of Import Services (DTI-BIS) an
anti-dumping protest against the importation of Clear Figured Glass (CFG)
from the People's Republic of China (PROC) alleging that said products were
imported at dumped prices and were causing injury to the domestic industry.
The PROC government was officially notified by the DTI-BIS of the
anti-dumping investigation on 06 July 2000. Likewise, the protestant,
exporters, foreign producers, importers, and other interested parties were
notified of the initiation on the same date. Notices to initiate said
anti-dumping investigation were also published in the Manila Standard and
the Philippine Star on 11 July 2000.
The DTI-BIS preliminary investigation indicated an affirmative finding of
the necessary elements of dumping, which merited the imposition of the
corresponding provisional bond for the identified exporters of clear figured
glass from the People's Republic of China with thicknesses of 3mm, 5mm,
5.5mm manufactured/exported to the Philippines by Shanghai Ta-Yuan Glass Co.
Ltd (STG) and Shanghai Cen Eagle Industrial Trading.
On 05 December 2000, the Tariff Commission received the indorsement from the
DTI-BIS to undertake the formal investigation of the case, pursuant to
Section 301 of the Tariff and Customs Code, as amended by RA 8752.
2. The
Investigation
2.1 Period of
Investigation
For dumping determination, the Commission’s investigation covered imports
of clear figured glass covering the 12-month period from 01 January to 31
December 1999. With respect to injury, the period covered was 1997 to 1999.
2.2 Notifications
Notices of Formal Investigation were published in the Manila Times and the
Philippine Star on 09 December 2000.
On 07 December 2000, notifications were sent to Ambassador Fu Ying of the
People's Republic of China (PROC) and the Philippine Ambassador to PROC, Mr.
Agustin C. Mangila Jr., informing them that the Commission had assumed
jurisdiction over the anti-dumping protest of RAGC and is commencing formal
investigation. Also notified, through their embassies in Manila, were the
governments of the trading firms whose clear figured glass exports from PROC
were subject to provisional measures.
Individual notifications were likewise sent to the local manufacturer (RAGC),
two (2) foreign manufacturers (STG & Shang-hai Cen Eagle Industrial
Trading) and five (5) importers (Malabon Mirror Factory and Aluminum Inds. ,
Isla Industrial Sales, Philtech Glass, Comglasco Corp. and Vetro Aluminum
Phils.).
2.3 Preliminary
Conference
Preliminary conference was held on 12 December 2000 for the purpose of
exploring the possibility of amicable settlement/price undertaking, and to
apprise the parties on the procedure of investigation and other related
matters necessary for the speedy disposition of the case.
Representatives and/or counsels for the domestic manufacturer and importer-protestees
attended the conference.
Public consultations, which were tentatively set from 30 January to 3
February 2001, were postponed since RAGC did not submit data on injury
before the scheduled hearing. A meeting was instead held on 30 January 2001
and interested parties agreed to reset the public consultation to 19 -22
February 2001.
2.4 Submission of
Initial Memoranda/Position Papers
On 22 December 2000, the Commission received the position paper of RAGC
regarding product comparability, price difference, injury and causal
linkage.
On 05 January 2001, STG submitted initial memoranda regarding comparability,
price difference, injury and causal linkage.
2.5 Plant
Visits/Verification
2.5.1
Domestic Industry
On 05 January 2001, the Commission conducted an ocular inspection at the
plant facilities of RAGC in Pasig City.
2.5.2
Exporter
From 03 to 07 January 2001, the Commission conducted an ocular
inspection and verification of books of accounts at the plant and office
facilities of STG in Shanghai, China.
No ocular inspection was conducted at the plant facilities of Shang-hai
Cen Eagle Industrial Trading since the company did not respond to any of
the communications sent by the Commission.
2.6 Public Consultation
Notices of public consultations were published in two (2) newspapers of
general circulation, namely, The Philippine Star and The Manila Times on 13
February 2001. All known interested parties and concerned government
agencies were also sent individual notices.
The Public consultations were scheduled from 19 to 22 February 2001.
However, the Commission only conducted two (2) public consultations,
commencing on 19 February 2001 and terminating on 20 February 2001, since
the only party present was the protestant. No protestees were present.
Likewise, the identified exporter-trading firms did not send
representatives.
On 19 February 2001, the Commission received a manifestation from protestee
PHILTECH GLASS thru its counsel, manifesting the following:
"That
since other protestees do not seem to have much interest in the
anti-dumping case by reason of their non-appearance and/or participation
during the last hearings, named protestee shall no longer participate in
the further proceeding, but shall abide by the findings of the Honorable
Commission."
THE
DOMESTIC INDUSTRY AND MARKET
1. Product
Under Consideration
Article 2.6 of the
Agreement, defines the term "like product" as:
"A
product which is identical, i.e., alike in all respect to the product under
consideration, or in the absence of such a product, another product which,
although not alike in all respects, has characteristics closely resembling
those of the product under consideration/"
1.1. Local
Product
RAGC’s figured glass is the product of the most advanced roll-out process.
This glass is specially used in windows, room partitions, light screens,
fluorescent fixtures of residences, offices, hotels, shops, restaurants and
commercial and industrial buildings.
It is available in different standard sizes and patterns such as Luningning
(International name Mistlite), Hasmin (International name Nashiji),
Sampaguita (International name Flora), Checkerlite, Karatachi, and Moran.
1.2 Imported Product
STG produces figured glass used for architectural application in buildings,
furniture and decoration, windows and doors. It manufactures different
patterns e.g., Moru, Mistlite, Flora, Hishicross, Nashiji, Aqualite, Kasumi,
Oceanic and Wanja with thicknesses from 3mm to 6mm.
2. Market
Participants
2.1 Domestic Producer
Republic-Asahi Glass Corporation was incorporated on 30 August 1988 as a
joint venture company between Republic Glass Holdings Corporation (formerly
Republic Glass Corporation) of the Philippines and Asahi Company, Ltd. of
Japan.
The company is the sole manufacturer of clear figured glass in the
Philippines, with an estimated actual capacity of 94%. It is ISO 9002
certified for the production of float glass.
In Metro Manila and other Luzon areas, RAGC has (5) five authorized
distributors of figured glass, namely: Chain Glass Enterprises; Glasteck,
Inc.; Pacific Glass Corporation; Quinta Trading Co.Inc; and Valerie Products
Mfg., Inc. Aside from the trading of clear figured glass, most of these
distributors have existing facilities for processing glass e.g., bevelling,
cutting, and polishing machines. The processed glasses are manufactured into
furniture, windows, decorative articles, etc.
2.2 Foreign
Manufacturers/Exporters
2.2.1 Shanghai
Ta-yuan Glass Co., Ltd (STG)
Shanghai Ta-yuan Glass Co., Ltd. (STG) was established in December 1995 as
a full foreign capital enterprise. It is located in a 66,000 sq. meter
property at Nanxiang Economic Developing Area of Jiading District in
Shanghai, the largest city in China.
The company started manufacturing figured glass with thicknesses of 2.5 mm
to 10 mm in its 1st production line on 15 August 1997. Annual
capacity is 25,000 MT. Total investments amounting to $10 million. The
technology and machinery came from Taiwan Hsinchu Glass Industrial Ltd.,
Co. On 26 August 1999, the 2nd figured glass production line
was commissioned to produce 50,000 MT annually. The investment amounted to
US $8 million. STG started exporting to the Philippines in September 1997.
In October 1997, STG exported its figured glass to other countries, i.e.,
USA, Japan, Korea, Europe, and Australia, among others.
The company exports Mistlite, Hishicross and Wanja designs to the
Philippines, with thicknesses of 3mm, 5mm, and 5.5mm.
STG employs a total of 300 employees (270 assigned to the plant and 30 to
the office). It supplies 30% of the domestic market in China.
2.2.2 Shang-hai
Cen Eagle International Trading Co., Ltd.
The
company is engaged in trading and is located in Jingiao Pudong Shanghai.
2.3 Importers
2.3.1 Malabon
Mirror Factory & Aluminum Industries, Inc. (MMFAII)
MMFAII was established as a single proprietorship with a capital of P10,
000.00. The company started by providing service to walk-in customers.
Because of increase in customer demand, its business expanded to local and
imported materials.
The
company is a pioneer in the automatic polishing, bevelling and smoothening
of glass and mirrors.
In 1978, it became a corporation, further expanding its business with the
installation of a line for manufacturing jalousies and inclusion of
accessories.
The company sources glass from RAGC’s distributors and Century Glass
Corp., and imports glass from China.
2.3.2 Isla
Industrial Sales
Isla Industrial Sales started as a trading company in 1982 and renewed its
business name in 1998 with a capital expenditure of P0.2 M. It is
primarily engaged in the processing of local and imported glass, and the
sale of construction materials.
2.3.3 Philtech Glass
Philtech Glass is a Filipino-owned company, engaged in the processing of
glass. Its office is located at San Francisco Del Monte, Q.C.
An ocular inspection of the plant facilities and verification of
information were conducted on 16 January 2001.
3. Industry
Support
Article
4.1 of the Agreement defines domestic industry as:
"Domestic
producers as a whole of the like product or to those whose collective
output of the products constitutes a major proportion of the total
domestic production of those products . . . "
Article
5.4 of the Agreement states that an investigation shall not be initiated
unless the application has been made by or on behalf of the domestic
industry:
"The
application shall be considered to have been made "by or on behalf of
the domestic industry" if it is supported by those domestic producers
whose collective output constitutes more than 50 per cent of the total
production of the like product produced by that portion of the domestic
industry expressing either support for or opposition to the application.
However, no investigation shall be initiated when domestic producers
expressly supporting the application account for less than 25 per cent of
total production of the like product produced by the domestic
industry."
RAGC
was the sole local manufacturer of clear figured glass in the Philippines
during the POI. As such, the applicant satisfied the requirement of domestic
industry support.
4.
Philippine Market
Total Philippine market for clear figured glass contracted by 15% from 1997
to 1998. However, in 1999, there was a slight increase of 6%. RAGC supplied
more than half of the total domestic clear figured glass requirements of
glass processors as well as ancillary industries, at 90.69% in 1997, 85.84%
in 1998 and 77.86% in 1999.
RAGC’s local sales exhibited a decline from 1997 to 1999. Sales dropped by
19% in 1998 and by 22% in 1999.
Imports from PROC, as a percentage of domestic market, accounted for 4% in
1997, 2% in 1998 and 6% in 1999. On the other hand, imports from other
countries continuously increased, registering a 6% share in 1997, 12% in
1998 and 16% in 1999.
Hence, trends show that imported CFG eroded the share of locally produced
clear figured glass during the three-year period.
FINDINGS
1 On
Like Product
Issues
Raised
RAGC
Locally
produced clear figured glass and the protested imported article from PROC
are made from the same basic raw materials, undergo the same production
process, and have the same applications.
STG
STG
alleged that imported clear figured glass is different from local CFG in
terms of quality and characteristics. This was echoed by importers Malabon
and Isla. However, no evidence was presented to substantiate these
allegations.
* Characteristics
RAGC
RAGC's clear figured glass has one translucent surface with varied designs
and another, which is smooth. The surface with the design permits light to
pass through it in a diffused manner so those objects behind it are not
clearly visible.
CFG is available in different sizes and patterns, such as Luningning,
Hasmin, Sampaguita, Checkerlite, Karatachi, and Moran.
Table 1:
SIZES AND DESIGNS OF LOCALLY PRODUCED
CLEAR FIGURED GLASS
|
DESIGN |
THICKNESS |
SIZE
(In mm) |
SIZE
( In Inches) |
| LUNINGNING
INTERNATIONAL NAME MISTLITE |
3.0 |
1830 x
1220 |
72 x 48 |
| |
5.5 |
1830 x
1220 |
72 x 48 |
| |
|
102 x
660 |
4 x 26 |
| |
|
102 x
710 |
4 x 28 |
| |
|
102 x
760 |
4 x 30 |
| |
|
102 x
815 |
4 x 32 |
| |
|
102 x
865 |
4 x 34 |
| |
|
102 x
915 |
4 x 36 |
| |
|
102 x
965 |
4 x 38 |
| |
|
102 x
1015 |
4 x 40 |
| |
|
102 x
1065 |
4 x 42 |
| |
|
102 x
1120 |
4 x 44 |
| |
5.0 |
1220 x
1830 |
48 x 72 |
| |
|
102 x
660 |
4 x 26 |
| |
|
102 x
710 |
4 x 28 |
| |
|
102 x
760 |
4 x 30 |
| |
|
102 x
815 |
4 x 32 |
| |
|
102 x
865 |
4 x 34 |
| |
|
102 x
915 |
4 x 36 |
| |
|
102 x
965 |
4 x 38 |
| |
|
102 x
1015 |
4 x 40 |
| |
|
102 x
1065 |
4 x 42 |
| |
|
102 x
1120 |
4 x 44 |
| |
|
102 x
1170 |
4 x 46 |
| |
|
102 x
1220 |
4 x 48 |
| CHECKERLITE |
3.5 |
1830
x1220 |
72 x
1220 |
| |
5.0
|
1830
x1220 |
72 x
1220 |
| HASMIN
INTERNATIONAL NAME NASHIJI |
5.0 |
1830
x1220 |
72
x 1220 |
| |
|
102 x
660 |
4 x 26 |
| |
|
102 x
710 |
4 x 28 |
| |
|
102 x
760 |
4 x 30 |
| |
|
102 x
815 |
4 x 32 |
| |
|
102 x
865 |
4 x 34 |
| |
|
102 x
915 |
4 x 36 |
| |
|
102 x
965 |
4 x 38 |
| |
|
102 x
1015 |
4 x 40 |
| |
|
102 x
1065 |
4 x 42 |
| |
|
102 x
1120 |
4 x 44 |
| |
|
102 x
1170 |
4 x 46 |
| |
|
102 x
1220 |
4 x 48 |
| |
5.5 |
1830
x1220 |
72 x 48 |
|
SAMPAGUITA
INTERNATIONAL
NAME FLORA |
3.5 |
1830 x
1220 |
72 x 48 |
| |
3.0 |
1830 X
1220 |
72 X 48 |
| |
5.0 |
1830 X
1220 |
72 X 48 |
| MORAN |
3.0 |
1830
X 1220 |
72 X 48 |
| |
5.0 |
1830
X 1220 |
72 X 48 |
STG
Imported CFG is classified in the Import and Export Trade Management
Regulars in China under Hdg. No. 7004. 90 00 "Other Glass (including
figured glass)", with tariff duties of 18% (Favorable) and 50%
(General).
STG
produces figured glass for building applications, furniture and
decorations, windows and doors. It manufactures different patterns of
figured glass, e.g., Moru, Mistlite, Flora, Hishicross, Nashiji, Aqualite,
Kasumi, Oceanic and Wanja, with thicknesses from 3mm to 6mm.
* Manufacturing Methods
and Technology
RAGC
The raw materials used in producing clear figured glass include feldspar,
dolomite, silica sand, and salt cake. These are sampled and weighed before
loading into the bath silos to insure standard quality.
CFG
manufacturing undergoes the following processes:
Table
2: Production Process
| 1.
Raw material preparation |
Raw
materials are inspected according to the standard specification |
|
2. Batch preparation |
Raw
materials are measured and mixed properly. |
|
3. Melting furnace |
Mixtures
of raw materials are heated at a temperature approximately 1,500 degrees
Celsius. |
|
4. LPG Heater |
Further
heated. |
|
5. Casting and drawing |
By
using the casting rolls, glass is drawn from the working end at the
required thickness and volume flow. At this stage the cast roll forms
the glass pattern/ design. |
|
6. Annealing |
Gradual
cooling is necessary to free the molten glass from internal stress. |
7. Crosswise and
lengthwise cutting
|
Glass
is cut to size. |
8. Inspection and
quality control
|
Visual
inspection is carried out to check thickness, size, design and clarity. |
9. Packing and
warehousing
|
Cut
glass is packed and brought to the warehouses, ready for delivery. |
STG
STG
uses sand, soda ash, salt cake, limestone, dolomite, carbon, nephline
syenite, sodium nitrate and cullets to produce clear figured glass. All
raw materials are sourced locally from nearby provinces in China.
The raw materials are weighed and mixed in a furnace at 1550oC
for four (4) hours. It is rolled, annealed, cut into the ordered size and
packed for domestic sale or for export. The width of the finished figured
glass from the 1st production line is 60" and 72"
from the 2nd production line.
A
quality inspection on thickness, tolerance, surface, bubble, white and
black specks, scratch, fragmentary, bending, roll marks, etc., is
conducted on the finished glass.
Grade
A glass is exported to USA, Japan, Korea and Australia. Grade B, on the
other hand, is exported to Southeast Asia and Middle East, and sold in the
domestic market.
* Uses
Local
Clear figured glass is specially used in windows, room partitions,
offices, hotels, shops, restaurants, and commercial and industrial
buildings, and as light screens and fluorescent fixtures in residences.
Imported
STG
produces figured glass for building applications, furniture and
decorations, windows and doors.
* Tariff
Classification
Based on the brochure and information submitted, imported clear figured
glass from PROC and those produced locally are classified in the same HS
subheadings of Harmonized System Tariff and Customs Code, as described
below:
|
PSCC
NO. |
HS
HDG. NO. |
DESCRIPTION |
RATE
OF DUTY (%) |
|
664.51 12 |
70.03 |
Cast glass and rolled
glass, in sheet or profiles, whether or not having an absorbent,
reflecting or non-reflecting layer, but not otherwise worked. |
|
| |
|
|
|
| |
|
- Non-wired sheets |
|
| |
|
|
|
| |
7003.12 |
- - Coloured
throughout the mass (body tinted), opacified, flashed or having an
absorbent, reflecting or non-reflecting layer:
|
|
| |
7003.12 10 |
- - - x x x |
|
| |
7003.12 90 |
- - - x x x |
|
| |
7003.19 |
- - Other: |
|
| |
7003.19 10 |
- - - x x x |
|
| |
7003.19 90 |
- - - Other |
15 |
| |
7003.20 00 |
- x x x |
|
| |
7003.30 00 |
- x x x |
|
* Conclusion
Clear
figured glass from PROC, exported by STG, and the local CFG are like
products, having the same applications and functions. Both are made of
similar raw materials and undergo the same production processes. These
are both classified under HS subheading No. 7003.19 90.
On
the other hand, CFG having the "i pattern", exported by
Shanghai Cen Eagle Industrial Trading, is not being locally produced by
RAGC, although this is classified under the same heading.
2
On Dumping
Dumping
occurs when any specific kind or class of foreign article is imported or
brought into the Philippines at a price, i.e., export price, less than
normal value.
Issues
Raised
RAGC
Price
difference exists between the normal value and the export price of clear
figured glass imported from PROC.
The
following issues were raised by the protestant in its memorandum submitted
to the Commission on 07 March 2001.
1 On
NV calculation
-
Adopt the domestic wholesale price of STG as certified by Commercial
attaché Mr. Agustin Mangila and adopted by DTI-BIS
- use
the exchange rate of RMB 8.26 to 8.40/US $1 based on black market rate
-
grant protestant access to the evidences submitted by STG which the
Commission used in computing for normal value
2 On
Cost of Production
- the
cost of production (COP) of export to the Philippines is US$191.73
plus a gross profit of 28.04%
- the
cost of production to domestic market is US $125.26 plus a gross
profit of 19.69%
- the
cost of production to other countries is US $210.24 plus a gross
profit of 28.51%
-
RAGC requested for reconciliation of the cost differences between the
COP used by DTI-BIS and the Commission
3 On
the Cost of Packing
-
there should be a difference between export and domestic packing cost
- the
packing cost of US$14.50/MT (as given by RAGC) must have to be
deducted from the export price to arrive at the ex-factory level
STG
STG
alleged that there are differences in the export selling prices for
different markets. Relative to the economic status and consumption
level, the prices in developed countries are generally higher than
prices in developing countries.
The
price list provided by Mr. Mangila to RAGC are market testing prices in
August 1997 and not the actual prices, since the company commenced
operation on 15 August 1997.
The exchange rate used in the calculation of domestic prices should be
the actual exchange rate and not the cash exchange rate, which was used
by RAGC, as provided by Mr. Mangila. For the past five (5) years,
Renminbi vis-à-vis US$ was stable between RMB 8.26 - 8.40.
The
export prices (excluding tax) for 3mm, 5mm and 5.5mm are higher by
20-30% than the normal value.
* Export
Price
Export price is the price paid or the selling price to an importer in
the Philippines of articles purchased at arm’s length transaction,
excluding any post exportation charges, such as, ocean freight and
overseas insurance.
The
Commission based its estimates of export price on Import Entry
Declarations (IED), SGS-CRFs, commercial invoices and packing list.
These documents were validated by the Commission in Shanghai, China.
Further, during its ocular inspection in PROC, the investigating team
confirmed that the packings used for domestic sales in China and for
export to the Philippines, such as the wooden materials, steel straps
and plastic covers, are the same.
Table
3: Unadjusted Export Price
|
Thickness
(mm) |
Range
of FOB Export Prices (US$/MT) |
| |
|
|
3.0 |
179.55 -
193.64 |
|
5.0 |
197.70 -
229.47 |
|
5.5 |
187.24 -
238.04 |
Export
prices were adjusted to ex-factory level by deducting RMB820/20ft
container representing inland, storage/handling/booking and space/customs
declaration. The adjusted export prices are as follows:
Table
4: Adjusted Export Price
|
Thickness
(mm) |
Range
of Adjusted Export Prices (US$/MT) |
| |
|
|
3.0 |
174.37 -
188.69 |
|
5.0 |
192.66 -
224.18 |
|
5.5 |
182.15 -
232.14 |
*
Normal Value
Article
2.1 of the Agreement states:
"Normal
value shall be the comparable price, in the ordinary course of trade,
for the like product when destined for consumption in the exporting
country."
For normal value calculations, RAGC submitted prices authenticated by
Philippine Commercial Attaché Mr. Agustin C. Mangila, Jr. in Guangzhou,
China. RAGC contested that there is material disparity between STG’s
submission on the costs of clear figured glass being sold in the domestic
market vis-à-vis export to the Philippines. Thus, the Commission
requested STG to submit another costing of products to amend the
disparity.
STG submitted several invoices and the 1999 price list of various
thicknesses, as requested by the Commission. These were verified during
the ocular inspection in Shanghai, China.
Hence,
the Commission adopted the submission of STG with the 1999 list of
exchange rates bearing the seal of the Bank of China, which it verified
and confirmed. Based on this, the following unadjusted normal values were
calculated:
Table
5: Unadjusted Normal Value
|
Thickness
(mm) |
Range
of Normal Values
(US$/MT) |
| |
|
|
3.0 |
160.51 -
160.60 |
|
5.0 |
175.16 -
175.20 |
|
5.5 |
176.77 -
176.81 |
Sales
were adjusted by deducting value-added tax equivalent to 17% of sales
value. No adjustments were made for Inland freight since the customer
shoulders this cost.
Table
6: Adjusted Normal Value
|
Thickness
(mm) |
Range
of Adjusted Normal Values (US$/MT) |
| |
|
|
3.0 |
137.23 -
137.26 |
|
5.0 |
149.71 -
149.74 |
|
5.5 |
151.08 -
151.12 |
* Margins
of Dumping
Article 2.4 of the Agreement sets the terms for comparing normal value and
export price:
"A
fair comparison shall be made between the export price and normal value.
This comparison shall be made at the same level of trade, normally at
the ex-factory level, and in respect of sales made at as nearly as
possible the same time. Due allowance shall be made in each case, on its
merits, for differences which affect price comparability, including
differences in conditions and terms of sale, taxation, levels of trade,
quantities, physical characteristics, and any other differences which
are also demonstrated to affect price comparability . . . "
Table
7: Dumping Margin
|
PEOPLE'S
REPUBLIC OF CHINA |
|
EXPORTER |
Nominal
Sizes
(mm) |
Dumping
Margin |
|
|
|
(US$/MT) |
(% of
EP) |
|
CLEAR
FIGURED GLASS |
|
|
|
|
|
|
Shanghai Ta-yuan |
|
|
|
|
|
3 |
-37.11
to - 51.45 |
-21.28
to - 27.27 |
|
|
5 |
-42.92
to - 74.48 |
-22.28
to - 33.22 |
|
|
5.5 |
-31.04
to - 81.05 |
-17.04
to - 34.92 |
|
|
|
|
|
Dumping
margins calculated for clear figured glass with thicknesses 3mm, 5mm, and
5.5mm ranged from (US$31.04) to (US$81.05) per MT.
3 On
Material Injury
- Volume
Effects
Table
8: Import Volumes (%)
|
YEAR |
% SHARE
TO TOTAL PHIL. IMPORTS |
| |
PROC |
OTHER
COUNTRIES |
|
Q1 |
0 |
100 |
|
Q2 |
45.92 |
54.08 |
|
Q3 |
18.99 |
81.01 |
|
Q4 |
46.31 |
53.69 |
|
TOTAL |
38.98 |
61.02 |
| |
|
|
|
1998 |
|
|
|
Q1 |
11.15 |
88.85 |
|
Q2 |
0 |
100 |
|
Q3 |
8.97 |
91.03 |
|
Q4 |
36.27 |
63.73 |
|
TOTAL |
14.05 |
85.95 |
|
Q1 |
18.47 |
81.53 |
|
Q2 |
26.28 |
73.72 |
|
Q3 |
23.15 |
76.85 |
|
Q4 |
50.08 |
49.92 |
|
TOTAL |
29.17 |
70.83 |
Source:
RAGC
Total imports of clear figured glass were increasing from 1997 to 1999.
Imports grew by 30% in 1998 and 116% in 1999 from the 1997 level.
Of the total Philippine CFG imports during the POI, 29% was accounted for
by imports coming from PROC and 71% from other countries. On a quarterly
basis, imports from PROC increased by 42.28% in the 2nd quarter
of 1999, contracted by 12% in the 3rd quarter and increased by
116% in the 4th quarter.
On
the other hand, quarterly imports from other countries moved in opposite
directions - - a decrease by 10% in the 2nd quarter, an
increase by 4% in the 3rd quarter and a 35% drop in the 4th
quarter.
- Price
Effects
Price
undercutting occurs when the prices of dumped imports are significantly
lower than the price of the like product.
Price depression occurs when the prices of dumped imports force down the
price of like product.
Price suppression occurs when the prices of dumped imports prevent
increases in the price of like product, which would otherwise have
occurred.
There was no evidence of price undercutting, price depression nor price
suppression.
- Injury
Factors
1 Market
Share
Table
9: Market Share (%)
|
YEAR |
MARKET
SHARE (%) |
| |
DOMESTIC
INDUSTRY |
PROC |
OTHER
COUNTRIES |
|
Q1 |
99.67 |
0 |
0.33 |
|
Q2 |
84.56 |
7.09 |
8.35 |
|
Q3 |
92.61 |
1.40 |
5.99 |
|
Q4 |
85.69 |
6.63 |
7.68 |
|
TOTAL |
90.31 |
3.78 |
5.91 |
| |
|
|
|
|
Q1 |
77.33 |
2.53 |
20.14 |
|
Q2 |
90.25 |
0 |
9.75 |
|
Q3 |
85.42 |
1.31 |
13.27 |
|
Q4 |
82.90 |
6.20 |
10.90 |
|
TOTAL |
84.48 |
2.18 |
13.34 |
| |
|
|
|
|
Q1 |
79.64 |
3.76 |
16.60 |
|
Q2 |
72.17 |
7.32 |
20.52 |
|
Q3 |
78.16 |
5.06 |
16.78 |
|
Q4 |
75.91 |
12.06 |
12.03 |
|
TOTAL |
76.10 |
6.97 |
16.93 |
Source:
RAGC
The estimated market share of RAGC for clear figured glass declined from
90% in 1997 to 84% in 1998 and further to 76% in 1999. On the other hand,
world imports of subject article grew by 30% in 1998 and 66% in 1999.
During the POI, the share of clear figured glass imports from PROC to
world imports increased from 18% in the 1st quarter to 26% in
the 2nd quarter. In the 3rd quarter, its share
dropped to 23%. However, it recovered in the 4th quarter as its
share grew to 50%.
RAGC’s market share for clear figured glass during the POI, decreased to
72.17% in the 2nd quarter compared with the 79.64% share in the
1st quarter of 1999. It improved to 78.16% in the 3rd
quarter but fell slightly to 75.91% in the last quarter.
It is observed that the surge in total imports of clear figured glass from
other countries contributed to the decline in the market share of RAGC.
2
Domestic Prices
The ex-factory domestic selling price of local clear figured glass for all
sizes is higher on the average by 10% than the landed cost of CFG from
PROC.
3
Production and Sales
Production volume during the POI dropped by 18% from the 1998 level.
Likewise, sales in 1999 were reduced by 3% from the 1998 level.
The decrease in production output during the period can be attributed to
the surge of imported clear figured glass coupled with market contraction
due to the regional crisis.
4
Capacity Utilization
RAGC normally operates 24 hours a day, 7 days a week with annual
production capacity of 43,796 metric tons of clear figured glass. The
company utilized 67% of capacity in 1997 and 68% in 1998. However, in
1999, production slowed down to 56% utilization.
The decline in capacity utilization during the period is attributed to the
surge in imported CFG coupled with market contraction due to the regional
crisis.
5
Domestic and Export Sales
Domestic
sales of clear figured glass showed a declining trend. Sales fell by 24%
in 1998 and further by 2% n 1999.
Likewise,
export sales of CFG were on a downtrend. From 1997 level, sales dropped
slightly by 4% in 1998 and then declined significantly to 28% in 1999.
During
the POI, domestic sales increased by 41% in the 2nd quarter
compared to the 1st quarter of 1999. In the 3rd
quarter, sales dropped by 15% then fell further by 21% in the last
quarter.
RAGC's
export sales of CFG fell by 67% in the 2nd quarter compared to
the 1st quarter of 1999. In the 3rd quarter, export
sales dropped by 43%. However, exports increased in the 4th
quarter by 28%.
The
decline in domestic and export sales can be attributed to the market
contraction brought about by the Asian financial crisis.
6 Cost of
Production
From
the 1998 level, cost of production for CFG increased by 42% in the 1st
quarter and 27% in the 2nd quarter of 1999. Comparing the 3rd
and 4th quarters of the POI with the respective quarters in
1998, the cost of production decreased by 16% and 25%, respectively.
RAGC’s
cost to produce is relatively higher than that of PROC manufacturers
because the former imports most of its raw material requirements
7
Profitability
RAGC’s
income from operation for clear figured glass declined by 45% and 2% in
1998 and 1999, respectively.
The
decline in profitability is attributed to declining sales resulting from
the surge in total imports of CFG combined with the contraction of the
market.
8 Return on
Sales
Declining
sales and profits led to low return on sales in 1999.
9
Investment and Ability to Raise Capital
RAGC
suffered a decline in its income from operation, which, in turn, affected
its ability to raise capital. The decrease in income from operation can be
attributed to competition from low-priced normal (undumped) imports from
other countries, high cost of production, and contraction of the local
market due to the regional crisis.
10
Employment and Wages
The
surge in imported CFG affected employment and wages as the company undertook
cost-cutting measures. In order to reduce operating expenses and consequent
losses, the company decided to effect a reduction in manpower by 27%.
5. Conclusions
The Commission concludes
that:
1. clear
figured glass produced by RAGC and imported clear figured glass are of the
same designs, thicknesses and sizes, and are made from similar raw materials;
2. there is
no dumping because adjusted export prices are greater than adjusted normal
values for clear figured glass with thicknesses of 3mm, 5mm and 5.5mm; and
3. there
being no price difference, injury to the domestic industry was due to causes
other than dumping.
APPLICATION
OF PROCEDURAL MATTERS UNDER R.A. 8752 (ANTI-DUMPING ACT OF 1999)
Procedural provisions of RA 8752 are applicable to the instant anti-dumping
case. In Republic vs. Court of Appeals, G.R. No. 92326, 24 January 1992, the
Court held:
"Procedural matters are governed by the law in force when they arise, and
procedural statutes are generally retroactive in that they apply to pending
proceedings and are not confined to those begun after their enactment
although, with respect to such pending proceedings, they affect only
procedural steps taken after their enactment." (205 SCRA 356).
DECISION
In
view of the foregoing, the elements of dumping not having been established,
the Commission orders that the anti-dumping case against PROC be dismissed for
lack of merit.
Let
copies of the decision be furnished the Protestant, the Protestees and the
Embassy of the People's Republic of China (PROC). The Secretary of the
Department of Trade and Industry shall, within ten (10) days from receipt of
this decision, cause the publication of the dispositive portion of the
decision in two (2) newspapers of general circulation.
SO
ORDERED
21 June 2001
(Signed)
EDGARDO B.
ABON
Chairman
(Signed)
REMEDIOS G. NAZARETH
(Signed) FERDINAND D. TOLENTINO
Commissioner
Commissioner
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