G/SG/N/8/PHL/14/Suppl.1  
G/SG/N/10/PHL/10  
G/SG/N/11/PHL/15  
 
18 October 2022  
(22-7840) Page: 1/4 
Committee on Safeguards  Original: English  
 
 
NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT ON  
SAFEGUARDS ON FINDING A SERIOUS INJURY OR THREAT  
THEREOF CAUSED BY INCREASED IMPORTS  
NOTIFICATION PURSUANT TO ARTICLE  12.1(C)  
OF THE AGREEMENT ON SAFEGUARDS  
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE  2 
OF THE AGREEMENT ON SAFEGUARDS  
PHILIPPINES  
High-Density Polyethylene and Linear Low -Density Polyethylene pellets and granules  
The following communication , dated 12 October 202 2 and received on  18 October 202 2, is being 
circulated at the request of the delegation of the Philippines.1 
_______________  
Further to G/SG/N/6/PHL/19 /Suppl.1  – G/SG/N/8/PHL/14 dated 24 September 2021 and pursuant 
to Article 12 and Article 9 of the WTO  Agreement on Safeguards, the Permanent Mission of the 
Philippines to the WTO hereby notifies the Committee on Safeguards that a decision to apply a 
definitive safeguard measure on the importation of High -Density Polyethylene (HDPE) pellets and 
granules fro m various countries  has been made.  
1  SERIOUS INJURY  OR THREAT CAUSED BY INCREASED IMPORTS  
While the domestic HDPE industry suffered injury, as evidenced by deterioration in industry market 
share, sales, and profitability during the period of import surge, the overall impairment in its position 
was not of a degree that may constitute serious injury .  
There exists an imminent threat of serious injury and significant overall impairment to the position 
of the domestic HDPE industry in the near future, as  shown by:  
(a) significant rate of increase in HDPE importations in 2021, pointing to the high likelihood 
that substantially increased imports will continue into the near future;  
(b) the substantial freely disposable production capacities of top supplier s Malaysia, Thailand, 
Singapore, and Indonesia in the form of trade diversion from their primary export markets 
and the importance of the Philippines as an alternative market, indicating a high likelihood of 
substantially increased exports of HDPE to the P hilippines in the near future; and  
(c) the significant deterioration in the overall position of the domestic HDPE industry during 
the period of import surge (i.e., declines in market share, sales, production, capacity 
utilization, and profits)  
 
1 A copy of the Department Administrative Order has been submitted electronically. To consult this 
document, please contact Ms Richards ( anne.richards@wto.org ) of the Rules Division.  G/SG/N/8/PHL/14/Suppl.1 • G/SG/N/10/PHL/10 • G/SG/N/11/PHL/15  
 
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  2  ABSOLUTE  INCREASE IN IMPORTS OR AN INCREASE IN IMPORTS RELATIVE TO 
DOMESTIC PRODUCTION  
HDPE pellets and granules were imported into the Philippines in increased quantities both in absolute 
terms and relative to domestic production starting in the first semester of 20 21. The increase in 
volume of imports was recent, sudden, sharp, and significant enough . 
Following a dip in 2016, imports of HDPE pellets and granules increased by 29% in 2017 and by 
another 6% in 2018. In 2019, imports continued to grow. In 2020, imports declined by 5% . 
The decline is attributable to the intense economic disruptions caused by the COVID -19 global 
outbreak.  
Import levels in 2019 and 2020 were thus considered "not normal " due to exceptional circumstances 
which influenced importations, namely the planned shutdown from October 2019 to March 2020 and 
the onset of the pandemic in 2020.  
Since the POI is until June 2021, a n evaluation of first semester imports over the POI showe d that 
the 2021 volume was significantly greater than the following relevant benchmark figures: by 52% 
compared to import levels in 2018 and by 56% compared to average levels in 2015 -2018. 
On average, import volumes in the first semester accounted for 50%,  or half, of annual imports 
during the normal years of 2015 -2018.  Considering this historical pattern, there is a high likelihood 
that imports in 2021 would exhibit similar trend.  
3  PRECISE DESCRIPTION  OF THE PRODUCT INVOLVED  
HDPE pellets and granules classi fied under ASEAN Harmonized Tariff Nomenclature (AHTN) Code 
3901.20.00 .  
4  PRECISE DESCRIPTION  OF THE PROPOSED MEASURE  
The Order provides the imposition of the definitive general safeguard measure in the amount of 
Php1,338 /MT for the first year, Php 1,271 /MT for the second year and Php 1,208/MT for the third year 
of the implementation period. The amount of the measure shall be subject to regular review to give 
the DTI an opportunity to modify the amount of the duty if necessary.  
5  DATE OF INTRODUCTION OF THE DEFINITIVE GENERAL SAFEGUARD MEASURE  
The definitive general safeguard measure is scheduled to enter into force upon the issuance of the 
relevant Customs Memorandum Orde r by the  Philippine  Bureau of Customs  or fifteen (15) days after 
the publication of the DTI Order in two (2) newspapers of general circulation, whichever comes 
earlier. The Order signed by the Secretary of the DTI on 30 September 2022 was published in two 
(2) newspapers of general circulation on 12 October 2022 .  
6  EXPECTED DURATION OF THE SAFEGUARD MEASURE  
The safeguard measure shall be imposed on imported HDPE pellets and granules from various 
countries for a period of three (3) years.  
7  EXPECTED TIMETABLE  FOR PROGRESSIVE LIBERALIZATION OF THE MEASURE  
A definitive safeguard duty effective for three (3) years shall be imposed on imported HDPE pellets 
from various countries to encourage and challenge the local HDPE industr y to be globally 
competitive. The amount  of the safeguard duty to be imposed shall be Php1,338 /MT for the first 
year, Php 1,271 /MT for the second year and Php 1,208/MT for the third year of the implementation 
period.   
8  MAJOR EXPORTING  MEMBERS OF IMPORTS OF THE PRODUCT INVOLVED  
Major exporting countries of imports of HDPE to the Philippines are Malaysia, Thailand, Saudi Arabia, 
Singapore,  Indonesia  and United Arab Emirates.  
_______________   G/SG/N/8/PHL/14/Suppl.1 • G/SG/N/10/PHL/10 • G/SG/N/11/PHL/15  
 
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  ANNEX  
LIST OF DEVELOPING COUNTRIES AND SEPARATE CUSTOMS TERRITORIES EXCLUDED 
FROM THE IMPOSITION OF THE DEFINITIVE SAFEGUARD MEASURE ON THE 
IMPORTATION OF HIGH -DENSITY POLYETHYLENE PELLETS  AND GRANULES  
East &  
Southern Africa  West Africa  North Africa  South Asia 
Angola  
Botswana  
Burundi  
Comoros  
Congo Dem. Rep. 
Djibouti  
Eritrea  
Eswatini  
Ethiopia  
Kenya  
Lesotho  
Madagascar  
Malawi  
Mauritius  
Mozambique  
Namibia  
Reunion  
Rwanda  
Seychelles  
Somalia  
South Africa  
Sudan  
Tanzania  
Uganda  
Zambia  
Zimbabwe  Benin  
Burkina Faso 
Cameroon  
Cape Verde  
Central African Rep.  
Chad 
Congo, Rep.  
Cote d'Ivoire  
Equatorial Guinea  
Gabon  
Gambia, The  
Ghana  
Guinea  
Guinea, Bissau  
Liberia  
Mali 
Mauritania  
Niger  
Nigeria  
Sao Tome & P rincipe  
Senegal  
Sierra Leone  
Togo Algeria  
Egypt, Arab Rep.  
Libya 
Morocco  
Tunisia  Afghanistan  
Bangladesh  
Bhutan  
British Indian Ocean  
 Territory  
East Timor  
India 
Maldives  
Nepal  
Pakistan  
Sri Lanka  
 
 
  G/SG/N/8/PHL/14/Suppl.1 • G/SG/N/10/PHL/10 • G/SG/N/11/PHL/15  
 
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  Europe &  
Central Asia  Middle East  Americas  East Asia & Pacific  
Albania  
Armenia  
Azerbaijan  
Belarus  
Bosnia &  
 Herzegovina  
Bulgaria  
Croatia  
Cyprus  
Czech Republic  
Estonia  
Georgia  
Greenland  
Hungary  
Kazakhstan  
Kyrgyz Republic  
Latvia  
Lithuania  
Macedonia, FYR  
Malta  
Moldova  
Poland  
Romania  
Russian Federation  
Slovakia  
Slovenia  
Tajikistan  
Türkiye  
Turkmenistan  
Ukraine  
Uzbekistan  
Yuguslavia, Fed. Rep.  Bahrain  
Iran, Islamic Rep.  
Iraq 
Israel  
Jordan  
Kuwait  
Lebanon  
Oman  
Qatar  
Syrian Arab Rep.  
West Bank & Gaza  
Yemen, Rep.  Anguilla  
Antigua & Barbuda  
Argentina  
Aruba  
Bahamas  
Barbados  
Belize  
Bermuda  
Bolivia  
Brazil  
British Virgin Islands  
Cayman Islands  
Chile 
Colombia  
Costa Rica  
Cuba 
Dominica  
Dominican Rep.  
Ecuador  
El Salvador  
Falkland Is.(Malvinas)  
French Guiana  
Grenada  
Guadaloupe  
Guatemala  
Guyana  
Haiti 
Honduras  
Jamaica  
Martinique  
Mexico  
Montserrat  
Netherland Antilles  
Nicaragua  
Norfolk Islands  
Panama  
Paraguay  
Peru 
Puerto Rico  
St. Helena  
St. Kitts & Navis  
St. Lucia  
St. Pierre & Miquelon  
St. Vincent & the  
 Grenadines  
Suriname  
Trinidad & Tobago  
Turks & Caicos Is.  
Uruguay  
US Virgin Islands  
Venezuela  American Samoa  
Brunei Darussalam  
Cambodia  
Chinese Taipei  
Christmas Is.  
Cocos (Keeling) Is.  
Cook Is.  
Fiji 
French Polynesia  
Guam  
Hong Kong, China  
Johnston Is.  
Kiribati  
Korea, Dem Rep. 
Lao, PDR  
Macau, China  
Marshall Islands  
Micronesia, Fed. Sts.  
Midway Is.  
Mongolia  
Myanmar  
Nauru  
New Caledonia  
Niue 
Northern Marianas Is.  
Palau  
Papua New Guinea  
People's Republic of  
 China  
Pitcaim Islands  
Samoa  
Solomon Islands  
Tokelau  
Tonga  
Tuvalu  
Vanuatu  
Viet Nam  
Wake Is.  
Wallis & Futuna Is.  
 
 
 
__________