Connect with us

Hi, what are you looking for?

Captain Of Success
Top Stories

Stock Markets

Canning raw material tariff cut seen reducing prices of canned goods

A worker is seen inside the new Mega manufacturing plant in Sto. Tomas, Batangas, March 1, 2023. — PHILSTAR/KRIZ JOHN ROSALES

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

    You May Also Like

    Stock Markets

    Students of the Institute of Civil Engineering of the University of the Philippines Diliman experience what it’s like on-board the Circular Explorer and attend...

    Stock Markets

    BW FILE PHOTO THE NATIONAL Government’s (NG) debt service bill surged year on year in November as both interest and amortization payments rose, data...

    Stock Markets

    In the photo are (seated L to R) Francisco “Coco” D.C. Mauricio, WeFund Lending Corp. President and CEO; Danilo “Bong” J. Mojica II, UnionDigital...

    Stock Markets

    THE DEVELOPMENT Bank of the Philippines (DBP) will again request for regulatory relief this year as it seeks to boost its capital position. “Just...

    Disclaimer: CaptainOfSuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
    The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.