1.1 SUMMARY

    On 25 May 1999, Republic Asahi Glass Corporation (RAGC) filed with the Department of Finance (DOF) an anti-dumping protest against the importation of Tinted & Clear Float Glass from Indonesia and Clear Float Glass from Malaysia on the ground that said products were imported at dumped prices and were causing injury to the domestic industry.

    The Indonesian and the Malaysian governments were officially notified by the Department of Trade and Industry - Bureau of Import Services (DTI-BIS) of the anti-dumping investigation on 17 and 18 August 1999, respectively. Likewise, the protestant, exporters, foreign producers, importers, end-user ancillary industries 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 Bulletin and the Philippine Star on 23 August 1999.

    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 float glass from Indonesia with thickness of 2mm, 3mm, 5mm, 6mm, 10mm and 12mm manufactured/exported to the Philippines by PT Muliaglass , PT Tensindo, PT Tunggal Majuasri, and PT Abdi Rakyat Bakti and for tinted float glass with thickness of 6mm and 12mm manufactured/exported to the Philippines by PT Abdi Rakyat and PT Muliaglass; Clear float glass from Malaysia with thickness of 2mm, 3mm, 6mm, 10mm and 12 mm manufactured/exported to the Philippines by Malaysian Sheet Glass Berhad and NSG Hongkong Co., Ltd.

    On 09 November 1999, the Tariff Commission received the request 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. Notices of Formal Investigation were published in TODAY and Philippine Star on 16 November 1999.

    In compliance with procedural requirements, on 12 November 1999 notifications were sent to the Indonesian and Malaysian Embassies in Makati City and the Philippine Embassy in Indonesia and Malaysia, with the information that the Commission had assumed jurisdiction over the anti-dumping protest of RAGC for formal investigation. Also notified, through their embassies in Manila, were the governments of the trading firms whose float glass exports from Indonesia and Malaysia were subject to provisional measures. Invitations to consultations and pre-hearing conferences were likewise sent to all interested parties. A notice of public hearing was published in TODAY and Philippine Star on 09 January 2000. All known interested parties and concerned government agencies were also sent individual notices.

1.2 PERIOD OF INVESTIGATION

    For dumping determination, the Commission’s investigation covered imports of Float Glass for the 12-month period from 01 January to December 31, 1998. With respect to injury, the period covered were years 1996 to 1998.

1.3 CONCLUSIONS

1.3.1 On the Determination of Like Product

    The imported clear and tinted float glass from Indonesia and clear float glass from Malaysia vis-a-vis the local clear and tinted float glass are like product, of the same applications and functions, using similar raw materials and similar production processes and classified under the same HS subheading Nos. 7005.21 90 (tinted) and 7005.29 90 (clear).

    Heading No. 70.05 is described in the HS Tariff and Customs Code as "float glass and surfaced ground or polished glass in sheets, whether or not having an absorbent, reflecting or non-reflecting layer, but not otherwise worked."

    The typical applications of clear and tinted float glass are: exterior and interior window and door openings; curtain walls; huge scenic openings (suspended glass systems); showcase windows; furniture applications (tabletops, dressers, etc.); interior room partitions; basic glass for mirrors, tempered and heat-strengthened safety glass, laminated safety glass, ballistic glass.

1.3.2 On Domestic Industry Support

    RAGC was the sole manufacturer of Clear and Tinted Float Glass in the Philippines during the POI. As such, the applicant satisfied the requirement of domestic industry support.

1.3.3 On Price Difference

Indonesia

1. Export Price

    The Commission based its estimates of export price on the validated import entries submitted by the protestant and on file with the Commission. Further verification was made on the documents from the importers as well as from the exporters.

    Export prices were adjusted to ex-factory level (net of inland freight, commission and packing cost). The adjustment varied depending upon the manufacturer and port of origin.

2. Normal Value

PT Muliaglass

    Since 1998 domestic sales indicated that sales were at below cost, the Commission used the company’s cost to produce and sell to calculate normal values. Comparison of weighted average selling price with the cost to produce and sell showed that such sales were done at below cost except for the 12 mm tinted float glass.

    After verifying that sales below cost were not recoverable, the Commission resorted to constructed normal values. Following the WTO Agreement, "normal" profit margin must be imputed for purposes of computation of constructed normal value, thus the adoption of 12% mark up (excluding financial charges) from operation of the cost of goods sold.

   It is known that during the Asian Financial Crisis, banks foreclosed on the production facilities of firms but allowed the same to be operated by existing management and employees. The arrangement, in effect, exempted firms from payment of financial charges. Moreover, continued production enabled banks to recover cost even if sales were at zero to minimal profits. Thus, zero profits claimed by Indonesian manufacturers cannot be accepted as occurring during normal conditions. The 12% mark-up estimated by the Commission, which was subsequently used in computing the constructed value, was based on the manufacturers disclosure that profits range from 10%-15% during normal conditions.

    Normal values were adjusted to ex-factory level (net of inland freight, commission and packing cost).

The constructed normal value of PT Muliaglass was adopted for PT Tensindo and PT Tunggal Majuasri since both did not submit data.

PT Abdi Rakyat Bakti

   The Commission adopted what DTI-BIS used as the export price to third country as an alternative normal value considering that the 1998 domestic sales were considered as not under normal conditions due to the political situation in the country during the POI.

3. Dumping Margin

    During the POI, exports of PT Muliaglass, PT Tensindo, PT Tunggal Majuasri and PT Abdi Rakyat Bakti were done directly to the Philippines.

    Dumping margin for PT Muliaglass was calculated based on its constructed normal value. For other exporters, dumping margin was computed on the best information available i.e., normal value of PT Muliaglass, export to third country.

    Positive price differences were computed between the normal value and export prices of clear float glass ranging from 2.06% to 333% of export price and tinted float glass at 5.65% of export price.

    The computed dumping margins were clearly above 2% and therefore not  de minimis.

Malaysia

1. Export Price

    The Commission based its calculations on the import entries submitted by RAGC and those on file with the Commission. Further validations were made on the documents of the importers.

2. Normal Value

    The basis for the normal value was the price list of MSGB on domestic wholesale prices as provided by the Philippine Commercial Attaché to Malaysia, Mr. Glenn G. Penaranda, considered as the best information available.

3. Dumping Margin

    During the POI, exports of MSGB and NSG Hongkong were done directly to the Philippines.

    Calculation of dumping margin for MSGB was based on the price list of domestic wholesale prices.

    Positive price differences were computed between the normal value and export prices of clear float glass ranging from 52% to 90%.

    The computed dumping margins were clearly above 2% and therefore not de minimis.

1.3.4 On Negligible Volume of Dumped Imports

    Dumped imports of clear and tinted float glass from Indonesia accounted for 40.76% and 16.31%, respectively of the total Philippine imports.

    Dumped imports of clear float glass from Malaysia accounted for 8.54% of the total Philippine imports. Since the volume of dumped imports was above 3% for Indonesia and Malaysia, it was therefore not negligible.

1.3.5 On the Determination of Material Injury and Causal Linkage

Volume of Dumped Imports

    Imports of clear float glass from Indonesia aggregated to 54% of total Philippine imports, while dumped imports accounted for 40.76%. All imports of clear float glass from Malaysia were at dumped prices, accounting for 8.54% of total Philippine imports.

    Imports of tinted float glass from Indonesia at dumped prices totaled 54% of total volume. Dumped imports accounted for 16.31% of the total Philippine imports.

    Clearly, the volume of dumped clear and tinted float glass from Indonesia and clear float glass from Malaysia is above de minimis volume of 3%, set out under Article 5.8 of the WTO Anti-Dumping Agreement.

Price Effect

    The extent of price undercutting was estimated using the landed cost of dumped clear and tinted float glass from Indonesia and Malaysia against the average ex-factory domestic selling price of local clear and tinted float glass.

    The price of dumped clear and tinted float glass from Indonesia on the average was lower than RAGC's price in 1998. Based on the calculations made, there was price undercutting by an average of 27.23% for clear float glass and 15.79% for tinted float glass.

    Between Malaysian export prices of clear float glass to the average selling price of RAGC, it likewise showed that there was price undercutting by an average of 22.78%.

    The average net selling price of locally produced clear float glass decreased by 17% in 1997 compared to 1996. In the 1^st quarter of 1998, the average net selling price increased by 28%. However, in the 2^nd and last quarters of 1998, the net average selling price of clear float glass decreased by 17%.

    Likewise, the average net selling price of locally produced tinted float glass followed the same trend. It declined by 17% in 1997 but increased by 3% in the 1^st quarter of 1998. In the 2^nd and last quarters of 1998, the average net selling price of tinted float glass decreased by 20%.

    Cost of production for clear float glass increased by 42% in the 1^st quarter of 1998. For tinted float glass, the cost of producing one metric ton increased by 31% in the 1^st quarter of 1998.

    Despite increasing cost of production in 1998, RAGC did not adjust its selling prices. The company even reduced prices to below production cost from the 2^nd to the 4^th quarters of the POI for both clear and tinted float glass to maintain competitiveness vis-à-vis dumped imports. Thus, the presence of dumped imports caused price depression.

Market Share

    The estimated market share of RAGC declined from 96% in 1996 to 90% in 1997 and further to 80% in 1998 for clear float glass, the share of total imports grew from 4% in 1996 to 10% in 1997 and further to 20% in 1998.

    During the POI, the share of dumped clear float imports from Indonesia declined from 47% in the 1^st quarter to 41% in the 2^nd quarter and further to 29% in the 3^rd quarter. However, during the 4^th quarter, its share grew to 53%. For Malaysia, the share of dumped imports dropped from 3% in the 1^st quarter to 2% in the 2^nd quarter. During the 3^rd and 4^th quarters, share of dumped imports increased to 10% and 22%, respectively.

    RAGC's market share for tinted float glass dropped in 1997 to 85% from 1996 level. However, in 1998, RAGC regained its share in the market to 90% in 1998. The share of imported tinted float glass was estimated at 8% in 1996, 14% in 1997 and 9% in 1998.

    Dumping contributed to the decline in the market share of RAGC for clear float glass but not for tinted float glass because of the total imports of tinted float glass from Indonesia, RAGC imported 96% in 1996 and 91% in 1997.

Production, Sales and Inventory

    Production volume in 1998 dropped by 20% from 1996 level. Likewise, sales in 1998 were reduced by 11% from 1996 level.

    The decrease in the production output is attributed to the surge of imported float glass coupled with market contraction due to the regional crisis.

Capacity Utilization

    RAGC had a maximum capacity of producing 109,091 MT of float glass. In 1996, RAGC was able to utilize 96% of capacity but it slowed down to 79% in 1998.

    The decline in capacity utilization during the period could be attributed to the surge of imported float glass coupled with market contraction due to the regional crisis.

Cost of Production

    Cost of production for clear float glass increased by 42% in the 1^st quarter of 1998. For tinted float glass, the cost of producing one metric ton increased by 31% in the 1^st quarter of 1998.

Profitability

    RAGC’s income from operation for clear float glass declined by 86% and 98% in 1997 and 1998. For tinted float glass, income from operation dropped by 55% in 1997 and further incurred a loss from operation in 1998.

    Dumping contributed to RAGC's decline in profitability.

Return on Sales

    Dumping contributed to RAGC's low return on sales in 1998.

Cash Flow

        RAGC's loss from operation in 1998 adversely affected the cash flow cycle which resulted to strong pressures on funding sources to meet working capital requirements to service its debt obligation and trade creditors.

Investment and Ability to Raise Capital

    Dumping was a factor in RAGC's inability to generate investment and raise capital. Further, dumping induced price depression that contributed to loss in income from operation in 1998.

Employment and Wages

    Dumping affected employment and wages as the company undertook cost cutting measures. In order to reduce operating expenses and consequently losses, the company decided to effect the reduction of employees.

Factors Other Than Dumping Which Caused Injury

(a) Competition from Normal (Undumped) Imports

    Non-dumped imports from countries other than Indonesia and Malaysia captured 30.43% share for clear float glass and 6.2% share for tinted float glass as against dumped imports at 43.69% and 9.32% for clear float glass from Indonesia and Malaysia, respectively and 11.10% from Indonesia for tinted float glass.

(b) High Cost to Produce

    RAGC’s cost to produce clear float glass and tinted float glass was relatively higher than its imported counterpart because it had to import most of its raw material requirements.

1.4 APPLICATION OF PROCEDURAL MATTERS UNDER RA 8752 (ANTI-DUMPING ACT OF 1999)

    On 12 August 1999, RA 8752 was signed by the President amending Section 301 of the TCCP. The aforesaid law became effective on 04 September 1999, i.e., after fifteen (15) days, following its publication on 19 August 1999 in Malaya and Philippine Standard.

    Procedural provisions of RA 8752 are applicable to the instant anti-dumping case. In Republic vs. Court of Appeals, G.R. No. 92326, January 24, 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) (underscoring supplied).

1.5 FINAL DETERMINATION

    The Commission finds positive evidence of price differences and is satisfied that dumping per se has caused material injury to the domestic industry for clear float glass.

It is therefore ordered that definitive anti-dumping duties be imposed on the following exporters of clear float glass originating from Indonesia and Malaysia.

    On the other hand, it is ordered that no definitive anti-dumping duty be imposed on the importation of tinted float glass.

1.6 REVIEW OF THE ANTI-DUMPING DUTY

    Paragraph (O), Section 301 of the TCCP, as amended by RA 8752, states:

"However, the need for the continued imposition of the anti-dumping duty may be reviewed by the Commission when warranted 'motu propio', or upon the direction of the Secretary, taking into consideration the need to protect the domestic industry against dumping."

"If the Commission determine that the anti-dumping duty is no longer necessary or warranted, the Secretary shall, upon its recommendation issue a Department Order immediately terminating the imposition of anti-dumping."

2. ABBREVIATIONS/ LEGENDS

3. INTRODUCTION

3.1 THE ANTI-DUMPING PROTEST

    On 25 May 1999, Republic Asahi Glass Corporation (RAGC) filed with the Department of Finance (DOF) an anti-dumping protest against the importation of Tinted & Clear Float Glass from Indonesia and Clear Float Glass from Malaysia on the ground that said products were imported at dumped prices and were causing injury to the domestic industry.

    The Indonesian and the Malaysian governments were officially notified by the Department of Trade and Industry - Bureau of Import Services (DTI-BIS) of the anti-dumping investigation on 17 and 18 August 1999, respectively. Likewise, the protestant, exporters, foreign producers, importers, end-user ancillary industries 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 Bulletin and the Philippine Star on 23 August 1999.

    The DTI-BIS preliminary investigation indicated an affirmative finding of the necessary elements of dumping which merit the imposition of the corresponding provisional bond for the identified exporters of clear float glass from Indonesia with thickness of 2mm, 3mm, 5mm, 6mm, 10mm and 12mm manufactured/exported to the Philippines by PT Muliaglass and PT Tensindo and for tinted float glass with thickness of 6mm manufactured/exported to the Philippines by PT Abdi Rakyat and PT Muliaglass; Clear float glass from Malaysia with thickness of 2mm, 3mm, 6mm, 10mm and 12 mm manufactured/exported to the Philippines by Malaysian Sheet Glass Berhad and NSG Hongkong Co., Ltd.

    On 09 November 1999, the Tariff Commission received the request 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. Notices of Formal Investigation were published in TODAY and Philippine Star on 16 November 1999.

3.2 ROLE OF THE COMMISSION

    Pursuant to Section 301 (b) of the Tariff and Customs Code of the Philippines (TCCP), as amended by Republic Act (RA) No. 8752, otherwise known as Anti-Dumping Act of 1999 and as implemented by Department Order (DO) No. 150-95 of the DOF and in accordance with Article VI of General Agreement on Tariff and Trade (GATT) 1994, the Commission, upon receipt of the endorsement of the case, conducted the formal investigation to determine the merits of imposing a definitive anti-dumping duty by:

1. verifying if the kind or class of article in question was imported into or sold or was likely to be sold in the Philippines at a price less than its normal value;

2. ascertaining the difference, if any, between the export price and normal value of the article; and

3. determining if, as a result thereof, the domestic industry producing like articles in the Philippines suffered, or was threatened with, injury, or suffered material retardation of the establishment of a domestic industry in the Philippines.

3.3 THE COMMISSION’S APPROACH TO THE ANTI-DUMPING CASE

        The Commission’s investigation involved the following courses of action:

-identification of all parties concerned;

-notification of foreign governments concerned and sending of questionnaire to all parties, both domestic and foreign;

-conduct of consultation and pre-hearing conferences, and public hearings;

-gathering of economic and financial data such as production, sales, inventory, employment, etc;

-conduct of ocular inspection and/or verification of information submitted by parties concerned;

-conduct of on-the-spot investigation in the territory of the exporting country;

-acceptance of memoranda and counter-memoranda of parties;

-evaluation and analysis of all information submitted/gathered to determine the existence of dumping, material injury, and causal link; and

-preparation of the report of final determination and submission to the DTI for the issuance of a Department Order for the imposition of the definitive anti-dumping duty, if affirmative, or the release of cash bond, if negative.

3.4 SCOPE OF THE ANTI-DUMPING INVESTIGATION

    The investigation covered the importation of Clear and Tinted Float Glass from Indonesia and Clear Float Glass from Malaysia, the importation or sale of which might have caused or was likely to injure, or retard the establishment of an industry producing like product in the Philippines.

4.1 PRODUCT UNDER CONSIDERATION

    The imported product, which is subject of this protest, is hereafter referred to as the "product under consideration".

    In its anti-dumping protest, RAGC identified HS subheading nos. 7005.21 90 and 7005.29 90. Heading No. 70.05 is described in the HS Tariff and Customs Code as "float glass and surfaced ground or polished glass in sheets, whether or not having an absorbent, reflecting or non-reflecting layer, but not otherwise worked."

    RAGC manufactures clear float glass with thicknesses of 2mm, 3mm, 5mm, 6mm, 8mm, 10mm, 12mm, 15mm and 19mm. The company produces tinted glass with thicknesses of 5mm (dark blue); 6mm (light blue); Bronze float with thicknesses of 5mm, 6mm, 10mm and 12mm; Dark Gray with thicknesses of 3mm, 5mm, 6mm; and Light Gray with thicknesses of 5mm and 6mm.

    The DTI-BIS, in its preliminary findings included the shipments of clear float glass from Malaysia with thicknesses of 2mm, 3mm, 6mm, 10mm, and 12mm. For clear float glass from Indonesia, DTI-BIS included 2mm, 3mm, 5mm, 6mm, 10mm, and 12mm; and for tinted glass, 6mm.

    The typical applications of clear and tinted float glass are: exterior and interior window and door openings; curtain walls; huge scenic openings (suspended glass systems); showcase windows; furniture applications (tabletops, dressers, etc.); interior room partitions; basic glass for mirrors, tempered and heat-strengthened safety glass, laminated safety glass, ballistic glass.

4.2 PERIOD OF INVESTIGATION (POI)

    For dumping determination, the Commission’s investigation covered imports of float glass for the 12-month period from 01 January to December 31, 1998. With respect to injury, the period covered were years 1996 to 1998.

4.3 NOTIFICATION

4.3.1 Formal Investigation/Questionnaire (Annex "A")

    On 12 November 1999, notifications were sent to Ambassadors H. E. ABU HARTONO and H. E. DATO’ NOOR ADLAN of the Indonesian and Malaysian Embassies in Makati City, respectively and the Philippine Ambassadors to Indonesia LEONIDES T. CADAY and Malaysia JOSE S. BRILLIANTES with the information that the Commission had assumed jurisdiction over the anti-dumping protest of RAGC for formal investigation. Also notified, through their embassies in Manila, were the governments of the trading firms whose float glass exports from Indonesia and Malaysia were subject to provisional measures.

    Individual notifications were likewise sent to the local manufacturer, five (5) foreign manufacturers, and twelve (12) importers.

4.3.2 Consultations (Annex "B")

    Consultations were held on 19 November 1999 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.

    For purposes of the expeditious resolution of the case, the Commission required the opposing parties to designate alternate counsels who would take over in the absence of the lead counsel.

    Representatives and/or counsels for the domestic manufacturer, importer- protestees and exporter-protestees attended the consultation.

    The presentation of RAGC's witnesses was set on 25, 27, and 28 January 2000. It was the respondent's turn on 16 February 2000.

4.3.3 Public Hearing

    Notices of public hearings were published in two (2) newspapers of general circulation, namely, The Philippine Star and Today on 09 January 2000. All known interested parties and concerned government agencies were also sent individual notices.

    The Commission conducted a total of four (4) public hearings commencing on 25 January 2000. The protestant and the Indonesian, as well as the Malaysian protestee-manufacturers and the protestee-importers, were represented at the hearings. The identified exporter-trading firms were not represented.

4.3.4 Ocular Inspection and/or On-the-Spot Investigation and Verification of Information

   Agreement to conduct an ocular inspection, examination of books of accounts and verification of information was requested from all concerned domestic parties. RAGC, Sun Industrial, San Francisco Mirror, Times Glass Palace/Davao Action Sales, Malabon Mirror and Asia Glass granted the request.

    The requests for the conduct of an on-the-spot investigation and/or verification of information of the Indonesian and Malaysian manufacturers - PT Muliaglass and Malaysian Sheet Glass Berhad were granted.

4.4 INQUIRY

    For purposes of final determination, the Commission limited its investigation according to the provisions of Section 6.10 of the Agreement which state:

"Authorities may limit their examination either to a reasonable number of interested parties or products by using samples which are statistically valid on the basis of information available to the authorities at the time of the selection, or to the largest percentage of volume of the exports from the country in question which can be reasonably investigated".

    Furthermore, parties who failed to submit answers to questionnaire were to be governed by the provisions of Section 6.8 of the Agreement which provide:

"In cases in which any interested party refuses access to, or otherwise does not provide, necessary information within a reasonable period or significantly impedes the investigation, preliminary and final determinations, affirmative or negative, may be made on the basis of facts available . . . "

4.5 DOMESTIC PRODUCER

4.5.1 Republic Asahi Glass

Company Profile

    Republic-Asahi Glass Corporation is a 60%-40% joint venture company between Republic Glass Holdings Corporation (formerly Republic Glass Corporation) of the Philippines and Asahi Company, Ltd. of Japan, duly registered in the Philippines on 30 August 1988.

    It has an authorized capital investment of P2.40 billion, of which P 1.558 billion is subscribed. The company is the sole manufacturer of float glass in the Philippines with existing plant capacity of 2,710,400 converted cases or 123,200 MT/ year and an estimated actual capacity of 2,409,000 converted cases or 109,500 MT/year. It is a holder of ISO 9002 certificate for the production of float glass.

    RAGC has also registered its second float glass plant in Bauan, Batangas with BOI as a non-pioneering producer of float glass under the Omnibus Investment Code of 1987. According to RAGC, this project was shelved because of the tight economic situation at that time.

    In the Metro Manila and Luzon areas, there are (7) seven authorized distributors of RAGC, namely: A-1 Industries, Inc.; Chain Glass Enterprises; Eternal Industry Enterprises; Glasteck, Inc.; Pacific Glass Corporation; Quinta Trading Co. Inc; and Valerie Products MFG., Inc. Aside from the trading of sheet glass, most of these distributors have existing facilities in the processing of glass e.g., bevelling, cutting, and polishing machines. The processed glass are then manufactured into furniture, windows, decorative purposes, etc.

    Whereas in the Visayas and Mindanao areas, RAGC maintains glass depots in major cities that serve as marketing arms for accredited franchise dealers which can only sell and process glass manufactured by RAGC.

Ocular Inspection

    The Commission conducted an ocular inspection of RAGC's plant facilities in Pasig City on 06 January 2000.

Verification of Information

    Verification of the company's records was conducted on 19 January and 26 April 2000.

4.6 MALAYSIAN MANUFACTURER

Company Profile

    Malaysian Sheet Glass Berhad (MSGB) was established in 1971, on a joint-venture basis between Malaysian Industries, Nippon Sheet Glass Co. Ltd., Japan and Toyo Menka Co. Ltd., Japan.

    The corporation maintains two integrated modern glass manufacturing facilities at Sungei, Buloh, Selangor and Pasir Gudang, Jahore, with a combined investment of approximately 8.0 billion pesos and a total workforce of 1,650 employees 5 years ago.

   The company's products conform to domestic and international standards such as SIRIM (Malaysian Standard), JIS (Japanese Industrial Standard), ECE (European Standard), AS (American Standard) and ISO 9002.

On-the-Spot Investigation and Verification of Information

    On 27 January 2000, the Commission conducted an ocular inspection of the plant facilities of Malaysian Sheet Glass Berhad.

4.7  INDONESIAN MANUFACTURERS

Company Profile

    PT Mulia Industrindo is the holding company of the Mulia Group for its industrial Division and has two operational subsidiaries, PT Muliaglass and PT Muliakeramik Indahraya. The production facilities of the Mulia Industrindo Group are located in Cikarang, 45 Km. East of Jakarta, Indonesia. As of 1999, the Mulia Group employs 8,881 people of which 2,958 are directly involved in the production of float glass.

    The first float glass plant was constructed in 1991 and started commercial operations in September 1992. Presently, Muliaglass operates three float glass plants with a combined capacity of 1,710 MT per day and two furnaces for the production of glass containers and glass blocks with a combined installed capacity of 420 MT per day. Muliaglass produces float glass, glass blocks and containers while PT Muliakeramik Indahraya produces ceramic tiles.

    PT Muliaglass is 35% owned by the public. The plant is situated in a 200-hectare lot, which also includes production plant of floor and wall tiles. Hence, it exercises synergism between the factories and limits the number of employees. PT Mulia Glass is an ISO 9002 certified company for its clear and tinted float glass production since 22 November 1996.

On-the-Spot Investigation and Verification of Information

    An ocular inspection and verification of information 2000 of the plant facilities of PT Mulia Glass was conducted on 13 and 14 April.

4.8.1 Times Glass, Inc.

Company Profile

    Times Glass, Inc. is a corporation duly organized and existing under by virtue of Philippine laws. The SEC registration was issued on 24 February 1993. The company is engaged in the wholesale, retail and processing of various classes of glass.

Ocular Inspection / Verification of information

    An ocular inspection information of the plant facilities as well as verification of Times Glass in Araneta Avenue, Q.C. was conducted on 10 January 2000.

4.8.2 Malabon Mirror Factory & Aluminum Industries, Inc. (MMFAII)

Company Profile

    MMFAII was established as a single proprietorship with a capital of P10, 000.00. At first the company provided only service to walk-in customers, until such time that because of customer's demand, it also provided for materials coming from local and foreign markets.

    It is a pioneer in the automatic polishing, bevelling and smoothing of glasses and mirror.

    In 1978 the company became a corporation when it expanded its business to include manufacturing of jalousies and other accessories.

    The company sources its glass from RAGC’s distributors Pacific Glass Corp. and A-1 Industries, Inc., and imports. From 1977 to 1980, the major sources were Japan, Belgium and Italy. At present, the main sources of imported glass are Singapore, Taiwan, Malaysia and Indonesia.

Ocular Inspection / Verification of information

    An ocular inspection of the plant facilities of Malabon Mirror in Caloocan City was conducted on 07 January 2000 and verification of information on 13 March 2000.

4.8.3 Isla Industrial Sales

Company Profile

    Isla Industrial Sales started its operation as a trading company in 1982 and renewed its business name in 1998 with a capital expenditure of P200, 000.00. Its principal line of business is the processing of local and imported glass and construction materials.

Company Profile

    Glasstemp, sister company of San Francisco Mirror is engaged in processing of glass into table top, jalousies, door and window panels. The factory is located in Bulacan.

4.8.5 San Francisco Mirror

Company Profile

    San Francisco Mirror is a Filipino owned company engaged in the processing of glass with office located at San Francisco Del Monte, Q.C.

Ocular Inspection / Verification of Information

    An ocular inspection of the plant facilities of San Francisco Mirror in Q.C. was conducted on 10 January 2000 as well as the verification of information.

Company Profile

    Asia Glass Palace has been importing clear and tinted float glass since 1998 due to its break-off as one of RAGC's distributor in the Mindanao area. The company is engaged in the trading and processing of imported glass.

Ocular Inspection / Verification of Information

    An ocular inspection of the plant facilities of Asia Glass Palace as well as the verification of information were conducted on 17 January 2000.

5. INDUSTRY AND MARKET

5.1 LIKE PRODUCT

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/"

5.1.1 Domestic Product

5.1.1a Tinted Float Glass

    Based on the brochures submitted, RAGC's tinted float glass is a heat absorbing transparent glass colored by traces of cobalt, iron and selenium to the raw materials of ordinary glass. It reduces a quantity of heat flowing into the building, lessens cooling load and induces energy savings. It is available in different thickness as described below:

Table 1: Types and specifications

    RAGC produces four (4) different types of tinted float glass with the following applications:

-Decorative applications

-Scenic openings, curtain walls, exterior and interior window, and interior room partitions

-Furniture applications (e.g., tabletops, cabinets, shelves, dressers, etc.)

-Basic glass for tinted mirrors, tempered glass for automotive and buildings

-Heat- strengthened safety glass and ballistic glass

5.1.1b   Clear Float Glass

    RAGC's float glass is produced by floating molten glass on top of a molten tin bath, forming a continuous ribbon pulled and cooled at controlled temperature. It has precise surface flatness and provides excellent through vision images. RAGC's float glass can be produced in wide ribbons of up to 3 meters and lengths of up to more than 10 meters. It is available in different dimensions as described below:

Table 2: Dimensions

* Available based on volume of requirements

    Clear float glass has the following applications:

- Basic glass for mirrors, tempered or laminated safety glass and ballistic glass

- Partitions or curtain walls

- Showcase windows, exterior and interior windows, and door openings

- Furniture applications (e.g., tabletops, dressers, etc.) and huge scenic openings (Glacade-Suspended Glass Systems).

5.1.2 Factors Considered in Determining Like Product

Description and Raw Material Composition

    Float glass is a hard, brittle and transparent substance, made by melting together feldspar, dolomite, silica sand, salt coke, etc. It is used to enhance aesthetic appearance of the buildings and serves as a barrier against either hot or cold weather. Float glass is also applicable to use in exterior and interior windows and door openings, curtain walls, furniture, safety glass for motor vehicles and other applications.

Production Process

    Float glass is manufactured through a continuous process.

    Essentially, raw materials are sampled and weighed before loading into the bath silos to insure that the quality standard is met. Finished products are checked on-line with the aid of computers. Sampling is done every hour or two, depending on the thickness of the glass.

    Float glass undergoes the following production processes:

1. raw material preparation
2. batch preparation
3. melting and refining
4. glass forming
5. annealing
6. washing
7. cutting and packing

Manufacturing Methods and Technology

    There are four (4) known exporters of float glass from Indonesia to the Philippines, namely: PT Muliaglass, PT Tensindo, PT Abdi Rakyat Bakti, and PT Tungal Majuasri. On the other hand, there are two (2) exporters from Malaysia. They are the Malaysian Sheet Glass Berhad (MSGB) and the NSG Hongkong Co., Ltd. (a trading company from Hongkong).

    Information on manufacturing processes were gathered mainly from the above-cited exporters. Other information were based on the testimonies of protestees, in order to determine product comparability.

    The production process of float glass in Indonesia and Malaysia consists of the following steps:

-    Batching

    The raw materials are measured and mixed in a mixer. Tinted float glass colorants are added to the raw materials to give the required glass color. Nickel oxide is added to obtain dark gray color of glass.

-    Melting

    Mixture of raw materials is heated in the furnace at a temperature approximately 1,500 degrees Celsius.

-    Forming

    The liquid glass is then channeled on top of a bath filled with molten tin on which the glass liquid floats.

-    Annealing

    The float glass is moved slowly onto a metal surface to gain strength.

-    Quality control and inspection

Visual inspection is carried out to check the thickness; size and clarity of float glass

-    Cutting and packing

Glass is cut according to the required size. Then, it is brought to the warehouse before delivery to customers.

Imported Float Glass

w Malaysia

    Based on the brochure submitted by MSGB, the following are the 8 different sizes of clear float glass produced:

Table 3: MAXIMUM STOCK SIZES

Indonesia

Table 4: Max. Sizes