Philippines Drops Planned Safeguard Duties on Imported Corrugated Core Paper

The Philippine government has decided not to proceed with formal safeguard measures on imports of corrugated cardboard base paper, following the conclusion of a year-long investigation into the sector.

The probe, initiated at the request of the Philippine Domestic Paper Industry Association (PULPAPEL), examined import trends from 2019 to 2024. Imports of corrugated base paper rose by approximately 71% over the period, increasing from around 75,000 tonnes in 2019 to 128,000 tonnes in 2024. Japan accounted for roughly half of total imports in 2024, making it the largest supplier.

As an interim step during the investigation, authorities imposed a temporary safeguard duty of 3,438 pesos (about $60) per tonne on imports from Japan, Indonesia, and other countries. The measure took effect on August 1, 2025, and was set to remain in place for 200 days.

However, the Philippine Tariff Commission ultimately ruled against imposing permanent safeguard duties. The decision cited insufficient evidence to demonstrate material injury to the domestic industry. Additionally, two cooperating producers—UPPC and Bataan 2020—were found to represent only about 30% of domestic production, undermining the claim that the petition reflected the broader industry.

Downstream users, including corrugated board manufacturers, also raised concerns during the investigation. They argued that imported semi-medium and industrial corrugating (SMIC) paper offered higher quality than locally produced alternatives and warned that safeguard measures could increase packaging costs and contribute to inflation.

As a result, both the proposed permanent measures and the temporary duties will be discontinued.

Despite rising domestic production capacity for recycled corrugated base paper, Philippine producers are currently operating at around 70% capacity utilization, reflecting continued import pressure and oversupply in the market. Industry stakeholders are expected to maintain focus on potential future restrictions on core paper and test liner imports.