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

Tariff Classification

    Based on the brochure and information submitted, imported tinted and clear float glass from Indonesia and those locally produced by RAGC are classified in the same HS subheadings under the Harmonized System Tariff and Customs Code, as described below:

70.05

Float glass and surface ground or polished glass, in sheets, whether of not having an absorbent, reflecting or non-reflecting layer, but not otherwise worked.

7005.10 -x x x
7005.10 10 - - - x x x
7005.10 90 - - - x x x

Other non-wired glass:

7005.21      - - Coloured throughout the mass (body tinted), opacified, flashed or merely
                         surface ground:

7005.21 10 - - - x x x
7005.21 90 - - - Other (e.g., tinted float glass)                              15

7005.29      - - x x x
7005.29 10 - - -x x x
7005.29 90 - - - Other ( e.g., clear float glass)                              15

7005.30 00 - - - x x x

Conclusion

   Having examined the product under consideration and the locally manufactured product, the Commission is satisfied that 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, having the same applications and functions, using similar raw materials and similar production processes.

    Moreover, during the conduct of investigation, the similarity of the imported and local clear and tinted float glass was not a concern of either the protestant nor the protestees. It was not at issue.

5.2 THE DOMESTIC INDUSTRY

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."

    During the POI, RAGC was the sole manufacturer of clear and tinted float glass in the Philippines. As such, the applicant satisfied the requirement of domestic industry support.

5.3 THE PHILIPPINE MARKET

    RAGC supplied more than half of the total domestic clear float glass requirements of glass processors as well as ancillary industries at 96% in 1996, 90% in 1997 and 80% in 1998.

    RAGC's local sales in 1998 of clear float glass declined by 16% while shares of total imports increased by 90.55%. Imports from Indonesia grew by 48% in that year, while imports from Malaysia were undertaken for the first time during the three-year period. Consequently, market share held by the local industry declined from 90% to 80%, while that accounted for by imported clear float glass grew from 10% to 19%.

    On tinted float glass, RAGC likewise supplied more than half of the total domestic requirement at 92% in 1996, 84% in 1997 and 90% in 1998.

    RAGC's local sales in 1998 for tinted float glass dropped by 20% with total imports decreasing by 48%, from 1997 level. Over the same period, market share held by the local industry increased from 85% to 90% while that accounted for by imported tinted float glass diminished from 14% to 10%.

6. 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.

6.1 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.

6.1.1 Indonesia

    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 exporter.

    For PT Muliaglass and PT Tensindo, export prices were adjusted to ex-factory level (net of inland freight, commission and packing cost). Adjustments made on export price to arrive at ex-factory level vary depending upon the manufacturer and port of origin.

6.1.2 Malaysia

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

6.2 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".

6.2.1 INDONESIA

PT Muliaglass

   Information on the company's domestic sales, export to third country and costs to produce and sell of clear and tinted float glass were submitted to the BIS. During the conduct of verification, the Commission requested PT Muliaglass to submit its domestic sales for 1998. Calculations indicated that all sales were at prices below cost, except for 12 mm tinted float glass. Domestic selling prices were used for the latter.

    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 computing constructed normal value, thus the adoption of 12% mark up (excluding financial charges) from operation.

    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. This 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 profit ranges from 10%-15% during normal conditions.

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

PT Tensindo & PT Tunggal Majuasri

    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 the DTI-BIS' export price to third country as the alternative normal value considering that 1998 domestic sales were not made under normal conditions due to the political situation in the country.

6.2.2 MALAYSIA

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

Table 5: Dumping Margin

6.3 DE MINIMIS MARGIN OF DUMPING

Article 5.8 of the Agreement states:

"There shall be immediate termination if the margin of dumping is de minimis. The margin of dumping shall be considered de minimis if the margin is less than 2 per cent, expressed as a percentage of the export price."

The computed dumping margin per individual exporter was clearly above de minimis.

7. THE ECONOMIC CONDITION OF THE INDUSTRY

7.1 DETERMINATION OF INJURY

Article 3 of the Agreement sets out the injury factors that must be examined by the investigating authority. These are:

1. volume of dumped imports;

2. effect of the dumped imports on prices in the domestic market for like products; and

3. consequent impact of the dumped imports on domestic producers of such products.

7.1.1 Volume of Dumped Imports

Negligible Volume of Dumped Imports

    Article 5.8 of the Agreement provides for the immediate termination of dumping cases where volume of dumped imports is found to be negligible:

"There shall be immediate termination in cases where the authorities determine that . . . the volume of dumped imports, actual or potential . . . is negligible. . . The volume of dumped imports shall normally be regarded as negligible if the volume of dumped imports from a particular country is found to account for less than 3 per cent of imports of like product in the importing Member, unless countries which individually account for less than 3 per cent of the imports of like product in the importing Member collectively account for more than 7 per cent of imports of like product in the importing member".

Source: ¹ RAGC
                ² Import Entries
                ³ NSO, Foreign Trade Statistics

 

    Total imports of clear float glass within the POI is estimated at 5,588 MT from Indonesia and 882 MT from Malaysia. On the other hand, total imports of tinted float glass from Indonesia is 401 MT.

    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 216 MT, or 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.

Volume Effect

    Article 3.2 of the Agreement states:

"With regard to the volume of dumped imports, the investigating authorities shall consider whether there has been a significant increase in dumped imports, either in absolute terms or relative to production or consumption in the importing Member."

Table 7: Import Volumes (MT)

Source: ¹ RAGC
                ² NSO, Foreign Trade Statistics
                ³ Import Entries

    Dumped imports of clear float glass from Indonesia and Malaysia accounted for 75% and 100%, respectively of imports from each country during the POI. Relative to domestic consumption, dumped imports from Indonesia accounted for 8%, while from Malaysia, 2%. A significant increase in dumped imports from Malaysia can be observed during the 3^rd and 4^th quarters of 1998.

    For tinted float glass, dumped imports from Indonesia was 2% of domestic consumption in 1998. A significant increase can be observed in the 4^th quarter as dumping occurred only in this quarter.

Price Effect

    Article 3.2 of the Agreement further states:

"With regard to effect of the dumped imports on prices, the investigating authorities shall consider whether there has been a significant price undercutting by the dumped imports as compared with the price of a like product of the importing Member, or whether the effect of such imports is otherwise to depress prices to a significant degree or prevent price increases, which otherwise would have occurred, to a significant degree."

    Price undercutting occurs when the prices of dumped imports are significantly lower than the price of the like product.

    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.

    A comparison between Indonesian export prices for clear and tinted float glass to the average selling price of RAGC show that there is price undercutting by an average of 27.23% and 15.79%, respectively.

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

    Price depression occurs when the price of dumped import forces down the price of like product.

    The average net selling price of locally produced clear float glass decreased by 17% in 1997 compared to 1996. In the first quarter of 1998, the average net selling price increased by 28%. However, in the second and last quarter 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 follows the same trend. It declined by 17% in 1997 but increase by 3% in the first quarter of 1998. In the second and last quarter of 1998, the average net selling price of tinted float glass decrease by 20%.

    Cost of production for clear float glass increased by a growth rate of 42% during the 1^st quarter of 19988. For tinted float glass the cost of producing a metric ton of tinted float glass grew at an average rate of 31% in the first quarter of 1998.

    Despite the increasing trend in the cost of production during 1998, RAGC did not adjust its selling prices. Thus, the presence of dumped imports caused price depression.

7.1.2 Injury Factors

Market Share

Table 8: Market Share

Source: ¹ RAGC
            ² NSO, Foreign Trade Statistics

    The contraction in the market depressed market prices resulting from a marked decline in clear and tinted float glass. A slowdown in construction activities took place beginning 1996. By mid 1997, the peso devaluation commenced. The Asian economic crisis began. Practically, all countries in Asia had to reckon with the economic storm that resulted to a drastic reduction in glass consumption. Philippine glass industry was no exception from the global market contraction.

    While 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 imports grew from 4% in 1996 to 10% in 1997 and further to 20% in 1998.

    RAGC's market share for tinted float glass dropped in 1997 to 85% from 1996 level of 91%. However, in 1998, RAGC regained its share in the market to 90% in 1998. The share of tinted float glass imports were 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

    The plant normally operates 24 hours a day, 7 days a week and has a maximum capacity of producing 109,091 metric tons of float glass. RAGC was able to utilize 96% of its capacity in 1996 but it slowed down to 79% in 1998. The decrease in the production output during the period can be attributed to the surge of imported float glass coupled with market contraction due to the regional crisis.

    Domestic sales volume of locally produced clear float glass declined by 3% in 1997 and 16% in 1998. Tinted float glass domestic sales increased by 8% in 1997 but dropped by 20% in 1998.

    On the other hand, export sales for clear float glass rose by 21% in 1997 and 2% in 1998. For tinted float glass export sales went up by 33% in 1997 and further by 14% in 1998.

Cost of Production

    The cost of producing a metric ton of clear float glass in 1998 was 10% higher than the 1997 level. For tinted float glass, the cost of production in 1998 is greater by 23% than the 1997 level. This was attributed to the 49% and 36% increase in RAGC's operational cost (including financial cost) for clear float glass and tinted float glass, respectively.

    On the average, manufacturing overhead accounts for 72% to 77% of total cost to produce and sell a metric ton of clear and tinted float glass.

Profitability

    Based on the documents submitted by RAGC, total sales of clear float glass from 1996 to 1998 was on a downtrend.

    In 1996, total cost of sales, which accounted for 62% of total sales increased to 84% in 1997 and further to 90% in 1998.

    Likewise, selling and administrative expenses, which represented 4% of total sales in 1996, increased to 10% in 1997 and 1998.

    With the combined increases from cost of sales and selling and administrative expenses, RAGC's income from operation for clear float glass declined by 86% and 98% in 1997 and 1998.

    Total sales of tinted float glass are on a downtrend. In relation to total sales, cost of sales increased from 75% in 1996, it went up to 78% in 1997 and further to 90% in 1998.

    With the declining trend on sales and the subsequent increase in the production cost of tinted glass, RAGC's income from operation declined by 55% in 1997 and incurred a loss from operation in 1998.

Return on Sales

   Income from float glass operation in relation to its sales was around 30% and 7% in 1996 and 1997. The return was a loss of 0.03% in 1998. Dumping contributed to RAGC's low return on sales in 1998.

Cash Flow

    When RAGC incurred a loss from operation in 1998 in contrast to profitable returns in previous years, it adversely affected the cash flow cycle of the company 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

    When RAGC suffered financial losses from its operation in 1998, investments and the ability to raise capital was affected. The proposed second float glass plant in Bauan,Batangas was postponed.

    Dumping was a factor since it induced the price depression that contributed to the 1998 negative income.

Employment and Wages

    The total manpower complement of RAGC was 1,310 in 1996 and was reduced to 1,246 and 1,041 in 1997 and 1998.

    This reduction was due to low production utilization and cost cutting measures of the company.

7.1.3 Factors Other Than Dumping

    The Commission evaluated factors other than dumping which could have caused injury to the domestic industry.

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.

High Cost to Produce

    RAGC's cost of producing clear float glass in 1998 was 10% higher than the 1997 level. For tinted float glass, the cost of production in 1998 is greater by 23% than the 1997 level. This was attributed to the 49% and 36% increase in RAGC's operational cost (including financial cost) for clear float glass and tinted float glass, respectively.

    On the average, manufacturing overhead accounts for 72% to 77% of total cost to produce and sell a metric ton of clear and tinted float glass.

    On the other hand, Indonesia and Malaysian companies enjoy a comparative advantage over its foreign competitors given the abundance and sustainable and cheap supply of raw materials in the country.

Financial Performance

    In view of the Asian financial crisis, which started in mid-1997, the Philippine economy experienced a slow-down, which was characterized by fluctuating foreign currency exchange rates and tight financial credit.

    The slow-down in the Philippine economy has significantly affected the company in terms of foreign exchange losses, higher financing costs and reduced sales and production volume. These factors had led to the company's declining financial and operating performance in 1997.

 

8. FINAL DETERMINATION

8.1 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.

8.2 APPLICATION OF PROCEDURAL MATTERS UNDER RA 8752

   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) ( underscoring supplied).

8.3 CONCLUSION

The Commission concludes that:

1. price difference exists between the normal values and export prices of clear and tinted float glass from Indonesia and clear float glass from Malaysia;

2. dumping per se of clear float glass imports originating in or exported from Indonesia and Malaysia during the POI caused material injury to the domestic industry as reflected in the decline in output, sales, market share, capacity utilization, profits;

3. several factors other than dumping, i.e., market contraction, high cost of production, foreign exchange losses and high interest cost on its loan obligations did exacerbate RAGC's injury to the point of a significant overall impairment in the position of the domestic industry; and

4. there is no injury with respect to the importation of tinted float glass because RAGC's imports accounts for 96% and 91% of total imports in 1996 and 1997, respectively. Hence, it is likewise ordered that no definitive and anti-dumping duty be imposed on the importation of tinted float glass.

    In view of the foregoing, the elements constituting dumping having been established, it is hereby ordered that the anti-dumping duties be imposed on clear float glass from Indonesia and Malaysia of HS Subheading No. 7005.29 90 with thickness of 2mm, 3mm, 5mm, 6mm, 10mm and 12mm. The corresponding anti-dumping duty shall be imposed on the herein-named exporters as follows: