REDUCING the most favored nation (MFN) tariff rate on tin-mill black plates (TMBPs) is expected to boost domestic production of tin plate and tin-free steel, possibly leading to reduced canned goods prices, the Tariff Commission heard.
At a public hearing on Friday, Perstima (Philippines), Inc., sought the reduction of the MFN tariff rate for TMBPs.
TMBPs are primarily used in the production of food cans, beverage cans, paint cans, and industrial cans.
Perstima, the sole manufacturer of tin plate and tin-free steel in the Philippines, currently imports 77% of its TMBP needs from Japan.
“The TMBP supply from Japan is very limited. And now our operation rate is around 30% or 40% of capacity. So we are thinking we want to increase our utilization rate,” according to Kai Adachi, Perstima sales manager.
“In order to do that, we need more TMBP from countries other than Japan, so a 3% (tariff) reduction on TMBPs from Taiwan and China is really important for us,” he added.
Perstima is a Philippine Economic Zone Authority-registered business enterprise in LIMA Estate. Its plant has the capacity to produce 200,000 metric tons of tin plate annually.
Between 2021 and 2024, source countries for TMBPs were Japan (77%), Taiwan (19%), China (3%), and South Korea (1%). Imports of TMBPs from Japan and South Korea are zero-duty, while Taiwan and Chinese TMBPs are subject to 3% duty.
According to Perstima, reducing the tariff rates on TMBP will not affect domestic industry.
“There are no domestic manufacturers in the Philippines that would be adversely affected by the tariff reduction,” it said. — Justine Irish D. Tabile
