(HS Heading Nos. 7003.19 90)
Anti-Dumping Investigation No. 00-01
(Public Version)


1. The Anti-Dumping Protest

On 27 June 2000, Republic Asahi Glass Corporation (RAGC) filed with the Department of Trade and Industry - Bureau of Import Services (DTI-BIS) an anti-dumping protest against the importation of Clear Figured Glass (CFG) from the People's Republic of China (PROC) alleging that said products were imported at dumped prices and were causing injury to the domestic industry.

The PROC government was officially notified by the DTI-BIS of the anti-dumping investigation on 06 July 2000. Likewise, the protestant, exporters, foreign producers, importers, 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 Standard and the Philippine Star on 11 July 2000.

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 figured glass from the People's Republic of China with thicknesses of 3mm, 5mm, 5.5mm manufactured/exported to the Philippines by Shanghai Ta-Yuan Glass Co. Ltd (STG) and Shanghai Cen Eagle Industrial Trading.

On 05 December 2000, the Tariff Commission received the indorsement 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.

2. The Investigation

2.1 Period of Investigation

For dumping determination, the Commission’s investigation covered imports of clear figured glass covering the 12-month period from 01 January to 31 December 1999. With respect to injury, the period covered was 1997 to 1999.

2.2 Notifications

Notices of Formal Investigation were published in the Manila Times and the Philippine Star on 09 December 2000.

On 07 December 2000, notifications were sent to Ambassador Fu Ying of the People's Republic of China (PROC) and the Philippine Ambassador to PROC, Mr. Agustin C. Mangila Jr., informing them that the Commission had assumed jurisdiction over the anti-dumping protest of RAGC and is commencing formal investigation. Also notified, through their embassies in Manila, were the governments of the trading firms whose clear figured glass exports from PROC were subject to provisional measures.

Individual notifications were likewise sent to the local manufacturer (RAGC), two (2) foreign manufacturers (STG & Shang-hai Cen Eagle Industrial Trading) and five (5) importers (Malabon Mirror Factory and Aluminum Inds. , Isla Industrial Sales, Philtech Glass, Comglasco Corp. and Vetro Aluminum Phils.).

2.3 Preliminary Conference

Preliminary conference was held on 12 December 2000 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.

Representatives and/or counsels for the domestic manufacturer and importer-protestees attended the conference.

Public consultations, which were tentatively set from 30 January to 3 February 2001, were postponed since RAGC did not submit data on injury before the scheduled hearing. A meeting was instead held on 30 January 2001 and interested parties agreed to reset the public consultation to 19 -22 February 2001.

2.4 Submission of Initial Memoranda/Position Papers

On 22 December 2000, the Commission received the position paper of RAGC regarding product comparability, price difference, injury and causal linkage.

On 05 January 2001, STG submitted initial memoranda regarding comparability, price difference, injury and causal linkage.

2.5 Plant Visits/Verification

2.5.1 Domestic Industry

On 05 January 2001, the Commission conducted an ocular inspection at the plant facilities of RAGC in Pasig City.

2.5.2 Exporter

From 03 to 07 January 2001, the Commission conducted an ocular inspection and verification of books of accounts at the plant and office facilities of STG in Shanghai, China.

No ocular inspection was conducted at the plant facilities of Shang-hai Cen Eagle Industrial Trading since the company did not respond to any of the communications sent by the Commission.

2.6 Public Consultation

Notices of public consultations were published in two (2) newspapers of general circulation, namely, The Philippine Star and The Manila Times on 13 February 2001. All known interested parties and concerned government agencies were also sent individual notices.

The Public consultations were scheduled from 19 to 22 February 2001. However, the Commission only conducted two (2) public consultations, commencing on 19 February 2001 and terminating on 20 February 2001, since the only party present was the protestant. No protestees were present. Likewise, the identified exporter-trading firms did not send representatives.

On 19 February 2001, the Commission received a manifestation from protestee PHILTECH GLASS thru its counsel, manifesting the following:

"That since other protestees do not seem to have much interest in the anti-dumping case by reason of their non-appearance and/or participation during the last hearings, named protestee shall no longer participate in the further proceeding, but shall abide by the findings of the Honorable Commission."


1. Product Under Consideration

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/"

1.1. Local Product

RAGC’s figured glass is the product of the most advanced roll-out process. This glass is specially used in windows, room partitions, light screens, fluorescent fixtures of residences, offices, hotels, shops, restaurants and commercial and industrial buildings.

It is available in different standard sizes and patterns such as Luningning (International name Mistlite), Hasmin (International name Nashiji), Sampaguita (International name Flora), Checkerlite, Karatachi, and Moran.

1.2 Imported Product

STG produces figured glass used for architectural application in buildings, furniture and decoration, windows and doors. It manufactures different patterns e.g., Moru, Mistlite, Flora, Hishicross, Nashiji, Aqualite, Kasumi, Oceanic and Wanja with thicknesses from 3mm to 6mm.

2. Market Participants

2.1 Domestic Producer

Republic-Asahi Glass Corporation was incorporated on 30 August 1988 as a joint venture company between Republic Glass Holdings Corporation (formerly Republic Glass Corporation) of the Philippines and Asahi Company, Ltd. of Japan.

The company is the sole manufacturer of clear figured glass in the Philippines, with an estimated actual capacity of 94%. It is ISO 9002 certified for the production of float glass.

In Metro Manila and other Luzon areas, RAGC has (5) five authorized distributors of figured glass, namely: Chain Glass Enterprises; Glasteck, Inc.; Pacific Glass Corporation; Quinta Trading Co.Inc; and Valerie Products Mfg., Inc. Aside from the trading of clear figured glass, most of these distributors have existing facilities for processing glass e.g., bevelling, cutting, and polishing machines. The processed glasses are manufactured into furniture, windows, decorative articles, etc.

2.2 Foreign Manufacturers/Exporters

2.2.1 Shanghai Ta-yuan Glass Co., Ltd (STG)

Shanghai Ta-yuan Glass Co., Ltd. (STG) was established in December 1995 as a full foreign capital enterprise. It is located in a 66,000 sq. meter property at Nanxiang Economic Developing Area of Jiading District in Shanghai, the largest city in China.

The company started manufacturing figured glass with thicknesses of 2.5 mm to 10 mm in its 1st production line on 15 August 1997. Annual capacity is 25,000 MT. Total investments amounting to $10 million. The technology and machinery came from Taiwan Hsinchu Glass Industrial Ltd., Co. On 26 August 1999, the 2nd figured glass production line was commissioned to produce 50,000 MT annually. The investment amounted to US $8 million. STG started exporting to the Philippines in September 1997.

In October 1997, STG exported its figured glass to other countries, i.e., USA, Japan, Korea, Europe, and Australia, among others.

The company exports Mistlite, Hishicross and Wanja designs to the Philippines, with thicknesses of 3mm, 5mm, and 5.5mm.

STG employs a total of 300 employees (270 assigned to the plant and 30 to the office). It supplies 30% of the domestic market in China.

2.2.2 Shang-hai Cen Eagle International Trading Co., Ltd.

The company is engaged in trading and is located in Jingiao Pudong Shanghai.

2.3 Importers

2.3.1 Malabon Mirror Factory & Aluminum Industries, Inc. (MMFAII)

MMFAII was established as a single proprietorship with a capital of P10, 000.00. The company started by providing service to walk-in customers. Because of increase in customer demand, its business expanded to local and imported materials.

The company is a pioneer in the automatic polishing, bevelling and smoothening of glass and mirrors.

In 1978, it became a corporation, further expanding its business with the installation of a line for manufacturing jalousies and inclusion of accessories.

The company sources glass from RAGC’s distributors and Century Glass Corp., and imports glass from China.

2.3.2 Isla Industrial Sales

Isla Industrial Sales started as a trading company in 1982 and renewed its business name in 1998 with a capital expenditure of P0.2 M. It is primarily engaged in the processing of local and imported glass, and the sale of construction materials.

2.3.3 Philtech Glass

Philtech Glass is a Filipino-owned company, engaged in the processing of glass. Its office is located at San Francisco Del Monte, Q.C.

An ocular inspection of the plant facilities and verification of information were conducted on 16 January 2001.

3. Industry Support

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."

RAGC was the sole local manufacturer of clear figured glass in the Philippines during the POI. As such, the applicant satisfied the requirement of domestic industry support.

4. Philippine Market

Total Philippine market for clear figured glass contracted by 15% from 1997 to 1998. However, in 1999, there was a slight increase of 6%. RAGC supplied more than half of the total domestic clear figured glass requirements of glass processors as well as ancillary industries, at 90.69% in 1997, 85.84% in 1998 and 77.86% in 1999.

RAGC’s local sales exhibited a decline from 1997 to 1999. Sales dropped by 19% in 1998 and by 22% in 1999.

Imports from PROC, as a percentage of domestic market, accounted for 4% in 1997, 2% in 1998 and 6% in 1999. On the other hand, imports from other countries continuously increased, registering a 6% share in 1997, 12% in 1998 and 16% in 1999.

Hence, trends show that imported CFG eroded the share of locally produced clear figured glass during the three-year period.


1. On Like Product

Issues Raised


Locally produced clear figured glass and the protested imported article from PROC are made from the same basic raw materials, undergo the same production process, and have the same applications.


STG alleged that imported clear figured glass is different from local CFG in terms of quality and characteristics. This was echoed by importers Malabon and Isla. However, no evidence was presented to substantiate these allegations.

* Characteristics


RAGC's clear figured glass has one translucent surface with varied designs and another, which is smooth. The surface with the design permits light to pass through it in a diffused manner so those objects behind it are not clearly visible.

CFG is available in different sizes and patterns, such as Luningning, Hasmin, Sampaguita, Checkerlite, Karatachi, and Moran.


SIZE (In mm)
SIZE (In Inches)
  5.5 1830 x 1220 72 x 48
    102 x 660 4 x 26
    102 x 710 4 x 28
    102 x 760 4 x 30
    102 x 815 4 x 32
    102 x 865 4 x 34
    102 x 915 4 x 36
    102 x 965 4 x 38
    102 x 1015 4 x 40
    102 x 1065 4 x 42
    102 x 1120 4 x 44
  5.0 1220 x 1830 48 x 72
    102 x 660 4 x 26
    102 x 710 4 x 28
    102 x 760 4 x 30
    102 x 815 4 x 32
    102 x 865 4 x 34
    102 x 915 4 x 36
    102 x 965 4 x 38
    102 x 1015 4 x 40
    102 x 1065 4 x 42
    102 x 1120 4 x 44
    102 x 1170 4 x 46
    102 x 1220 4 x 48
CHECKERLITE 3.5 1830 x1220 72 x 1220
  5.0 1830 x1220 72 x 1220
    102 x 660 4 x 26
    102 x 710 4 x 28
    102 x 760 4 x 30
    102 x 815 4 x 32
    102 x 865 4 x 34
    102 x 915 4 x 36
    102 x 965 4 x 38
    102 x 1015 4 x 40
    102 x 1065 4 x 42
    102 x 1120 4 x 44
    102 x 1170 4 x 46
    102 x 1220 4 x 48
  5.5 1830 x1220 72 x 48
  3.0 1830 X 1220 72 X 48
  5.0 1830 X 1220 72 X 48
MORAN 3.0 1830 X 1220 72 X 48
  5.0 1830 X 1220 72 X 48


Imported CFG is classified in the Import and Export Trade Management Regulars in China under Hdg. No. 7004. 90 00 "Other Glass (including figured glass)", with tariff duties of 18% (Favorable) and 50% (General).

STG produces figured glass for building applications, furniture and decorations, windows and doors. It manufactures different patterns of figured glass, e.g., Moru, Mistlite, Flora, Hishicross, Nashiji, Aqualite, Kasumi, Oceanic and Wanja, with thicknesses from 3mm to 6mm.

* Manufacturing Methods and Technology


The raw materials used in producing clear figured glass include feldspar, dolomite, silica sand, and salt cake. These are sampled and weighed before loading into the bath silos to insure standard quality.

CFG manufacturing undergoes the following processes:

Table 2: Production Process
1. Raw material preparation Raw materials are inspected according to the standard specification
2. Batch preparation Raw materials are measured and mixed properly.
3. Melting furnace Mixtures of raw materials are heated at a temperature approximately 1,500 degrees Celsius.
4. LPG Heater Further heated.
5. Casting and drawing By using the casting rolls, glass is drawn from the working end at the required thickness and volume flow. At this stage the cast roll forms the glass pattern/ design.
6. Annealing Gradual cooling is necessary to free the molten glass from internal stress.
7. Crosswise and lengthwise cutting Glass is cut to size.
8. Inspection and quality control Visual inspection is carried out to check thickness, size, design and clarity.
9. Packing and warehousing Cut glass is packed and brought to the warehouses, ready for delivery.


STG uses sand, soda ash, salt cake, limestone, dolomite, carbon, nephline syenite, sodium nitrate and cullets to produce clear figured glass. All raw materials are sourced locally from nearby provinces in China.

The raw materials are weighed and mixed in a furnace at 1550oC for four (4) hours. It is rolled, annealed, cut into the ordered size and packed for domestic sale or for export. The width of the finished figured glass from the 1st production line is 60" and 72" from the 2nd production line.

A quality inspection on thickness, tolerance, surface, bubble, white and black specks, scratch, fragmentary, bending, roll marks, etc., is conducted on the finished glass.

Grade A glass is exported to USA, Japan, Korea and Australia. Grade B, on the other hand, is exported to Southeast Asia and Middle East, and sold in the domestic market.

* Uses


Clear figured glass is specially used in windows, room partitions, offices, hotels, shops, restaurants, and commercial and industrial buildings, and as light screens and fluorescent fixtures in residences.


STG produces figured glass for building applications, furniture and decorations, windows and doors.

* Tariff Classification

Based on the brochure and information submitted, imported clear figured glass from PROC and those produced locally are classified in the same HS subheadings of Harmonized System Tariff and Customs Code, as described below:

664.51 12 70.03 Cast glass and rolled glass, in sheet or profiles, whether or not having an absorbent, reflecting or non-reflecting layer, but not otherwise worked.  
    - Non-wired sheets  
  7003.12 - - Coloured throughout the mass (body tinted), opacified, flashed or having an absorbent, reflecting or non-reflecting layer:  
  7003.12 10 - - - x x x  
  7003.12 90 - - - x x x  
  7003.19 - - Other:  
  7003.19 10 - - - x x x  
  7003.19 90 - - - Other 15
  7003.20 00 - x x x  
  7003.30 00 - x x x  
* Conclusion

Clear figured glass from PROC, exported by STG, and the local CFG are like products, having the same applications and functions. Both are made of similar raw materials and undergo the same production processes. These are both classified under HS subheading No. 7003.19 90.

On the other hand, CFG having the "i pattern", exported by Shanghai Cen Eagle Industrial Trading, is not being locally produced by RAGC, although this is classified under the same heading.

2 On 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.

Issues Raised


Price difference exists between the normal value and the export price of clear figured glass imported from PROC.

The following issues were raised by the protestant in its memorandum submitted to the Commission on 07 March 2001.

1. On NV calculation
- Adopt the domestic wholesale price of STG as certified by Commercial attaché Mr. Agustin Mangila and adopted by DTI-BIS
- use the exchange rate of RMB 8.26 to 8.40/US $1 based on black market rate
- grant protestant access to the evidences submitted by STG which the Commission used in computing for normal value

2. On Cost of Production
- the cost of production (COP) of export to the Philippines is US$191.73 plus a gross profit of 28.04%
- the cost of production to domestic market is US $125.26 plus a gross profit of 19.69%
- the cost of production to other countries is US $210.24 plus a gross profit of 28.51%
- RAGC requested for reconciliation of the cost differences between the COP used by DTI-BIS and the Commission

3. On the Cost of Packing
- there should be a difference between export and domestic packing cost
- the packing cost of US$14.50/MT (as given by RAGC) must have to be deducted from the export price to arrive at the ex-factory level


STG alleged that there are differences in the export selling prices for different markets. Relative to the economic status and consumption level, the prices in developed countries are generally higher than prices in developing countries.

The price list provided by Mr. Mangila to RAGC are market testing prices in August 1997 and not the actual prices, since the company commenced operation on 15 August 1997.

The exchange rate used in the calculation of domestic prices should be the actual exchange rate and not the cash exchange rate, which was used by RAGC, as provided by Mr. Mangila. For the past five (5) years, Renminbi vis-à-vis US$ was stable between RMB 8.26 - 8.40.

The export prices (excluding tax) for 3mm, 5mm and 5.5mm are higher by 20-30% than the normal value.

* 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.

The Commission based its estimates of export price on Import Entry Declarations (IED), SGS-CRFs, commercial invoices and packing list. These documents were validated by the Commission in Shanghai, China. Further, during its ocular inspection in PROC, the investigating team confirmed that the packings used for domestic sales in China and for export to the Philippines, such as the wooden materials, steel straps and plastic covers, are the same.

Table 3: Unadjusted Export Price
Thickness (mm) Range of FOB Export Prices (US$/MT)
3.0 179.55 - 193.64
5.0 197.70 - 229.47
5.5 187.24 - 238.04
Export prices were adjusted to ex-factory level by deducting RMB820/20ft container representing inland, storage/handling/booking and space/customs declaration. The adjusted export prices are as follows:

Table 4: Adjusted Export Price
Thickness (mm) Range of Adjusted Export Prices (US$/MT)
3.0 174.37 - 188.69
5.0 192.66 - 224.18
5.5 182.15 - 232.14
* 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."

For normal value calculations, RAGC submitted prices authenticated by Philippine Commercial Attaché Mr. Agustin C. Mangila, Jr. in Guangzhou, China. RAGC contested that there is material disparity between STG’s submission on the costs of clear figured glass being sold in the domestic market vis-à-vis export to the Philippines. Thus, the Commission requested STG to submit another costing of products to amend the disparity.

STG submitted several invoices and the 1999 price list of various thicknesses, as requested by the Commission. These were verified during the ocular inspection in Shanghai, China.

Hence, the Commission adopted the submission of STG with the 1999 list of exchange rates bearing the seal of the Bank of China, which it verified and confirmed. Based on this, the following unadjusted normal values were calculated:

Table 5: Unadjusted Normal Value
Thickness (mm) Range of Normal Values (US$/MT)
3.0 160.51 - 160.60
5.0 175.16 - 175.20
5.5 176.77 - 176.81
Sales were adjusted by deducting value-added tax equivalent to 17% of sales value. No adjustments were made for Inland freight since the customer shoulders this cost.

Table 6: Adjusted Normal Value
Thickness (mm) Range of Adjusted Normal Values (US$/MT)
3.0 137.23 - 137.26
5.0 149.71 - 149.74
5.5 151.08 - 151.12
* Margins of Dumping

Article 2.4 of the Agreement sets the terms for comparing normal value and export price:

"A fair comparison shall be made between the export price and normal value. This comparison shall be made at the same level of trade, normally at the ex-factory level, and in respect of sales made at as nearly as possible the same time. Due allowance shall be made in each case, on its merits, for differences which affect price comparability, including differences in conditions and terms of sale, taxation, levels of trade, quantities, physical characteristics, and any other differences which are also demonstrated to affect price comparability . . . "

Table 7: Dumping Margin
Shanghai Ta-yuan   
EXPORTER Nominal Sizes (mm) Dumping Margin
    (US$/MT) (% of EP)
  3 -37.11 to - 51.45 -21.28 to - 27.27
  5 -42.92 to - 74.48 -22.28 to - 33.22
  5.5 -31.04 to - 81.05 -17.04 to - 34.92
Dumping margins calculated for clear figured glass with thicknesses 3mm, 5mm, and 5.5mm ranged from (US$31.04) to (US$81.05) per MT.

3. On Material Injury

- Volume Effects

Table 8: Import Volumes (%)
Q1 0 100
Q2 45.92 54.08
Q3 18.99 81.01
Q4 46.31 53.69
TOTAL 38.98 61.02
Q1 11.15 88.85
Q2 0 100
Q3 8.97 91.03
Q4 36.27 63.73
TOTAL 14.05 85.95
Q1 18.47 81.53
Q2 26.28 73.72
Q3 23.15 76.85
Q4 50.08 49.92
TOTAL 29.17 70.83
Source: RAGC

Total imports of clear figured glass were increasing from 1997 to 1999. Imports grew by 30% in 1998 and 116% in 1999 from the 1997 level.

Of the total Philippine CFG imports during the POI, 29% was accounted for by imports coming from PROC and 71% from other countries. On a quarterly basis, imports from PROC increased by 42.28% in the 2nd quarter of 1999, contracted by 12% in the 3rd quarter and increased by 116% in the 4th quarter.

On the other hand, quarterly imports from other countries moved in opposite directions - - a decrease by 10% in the 2nd quarter, an increase by 4% in the 3rd quarter and a 35% drop in the 4th quarter.

- Price Effects

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

Price depression occurs when the prices of dumped imports force down the price of like product.

Price suppression occurs when the prices of dumped imports prevent increases in the price of like product, which would otherwise have occurred.

There was no evidence of price undercutting, price depression nor price suppression.

- Injury Factors

1. Market Share

Table 9: Market Share (%)
Q1 99.67 0 0.33
Q2 84.56 7.09 8.35
Q3 92.61 1.40 5.99
Q4 85.69 6.63 7.68
TOTAL 90.31 3.78 5.91
Q1 77.33 2.53 20.14
Q2 90.25 0 9.75
Q3 85.42 1.31 13.27
Q4 82.90 6.20 10.90
TOTAL 84.48 2.18 13.34
Q1 79.64 3.76 16.60
Q2 72.17 7.32 20.52
Q3 78.16 5.06 16.78
Q4 75.91 12.06 12.03
TOTAL 76.10 6.97 16.93
Source: RAGC

The estimated market share of RAGC for clear figured glass declined from 90% in 1997 to 84% in 1998 and further to 76% in 1999. On the other hand, world imports of subject article grew by 30% in 1998 and 66% in 1999.

During the POI, the share of clear figured glass imports from PROC to world imports increased from 18% in the 1st quarter to 26% in the 2nd quarter. In the 3rd quarter, its share dropped to 23%. However, it recovered in the 4th quarter as its share grew to 50%.

RAGC’s market share for clear figured glass during the POI, decreased to 72.17% in the 2nd quarter compared with the 79.64% share in the 1st quarter of 1999. It improved to 78.16% in the 3rd quarter but fell slightly to 75.91% in the last quarter.

It is observed that the surge in total imports of clear figured glass from other countries contributed to the decline in the market share of RAGC.

2. Domestic Prices

The ex-factory domestic selling price of local clear figured glass for all sizes is higher on the average by 10% than the landed cost of CFG from PROC.

3. Production and Sales

Production volume during the POI dropped by 18% from the 1998 level. Likewise, sales in 1999 were reduced by 3% from the 1998 level.

The decrease in production output during the period can be attributed to the surge of imported clear figured glass coupled with market contraction due to the regional crisis.

4. Capacity Utilization

RAGC normally operates 24 hours a day, 7 days a week with annual production capacity of 43,796 metric tons of clear figured glass. The company utilized 67% of capacity in 1997 and 68% in 1998. However, in 1999, production slowed down to 56% utilization.

The decline in capacity utilization during the period is attributed to the surge in imported CFG coupled with market contraction due to the regional crisis.

5. Domestic and Export Sales

Domestic sales of clear figured glass showed a declining trend. Sales fell by 24% in 1998 and further by 2% n 1999.

Likewise, export sales of CFG were on a downtrend. From 1997 level, sales dropped slightly by 4% in 1998 and then declined significantly to 28% in 1999.

During the POI, domestic sales increased by 41% in the 2nd quarter compared to the 1st quarter of 1999. In the 3rd quarter, sales dropped by 15% then fell further by 21% in the last quarter.

RAGC's export sales of CFG fell by 67% in the 2nd quarter compared to the 1st quarter of 1999. In the 3rd quarter, export sales dropped by 43%. However, exports increased in the 4th quarter by 28%.

The decline in domestic and export sales can be attributed to the market contraction brought about by the Asian financial crisis.

6. Cost of Production

From the 1998 level, cost of production for CFG increased by 42% in the 1st quarter and 27% in the 2nd quarter of 1999. Comparing the 3rd and 4th quarters of the POI with the respective quarters in 1998, the cost of production decreased by 16% and 25%, respectively.

RAGC’s cost to produce is relatively higher than that of PROC manufacturers because the former imports most of its raw material requirements

7. Profitability

RAGC’s income from operation for clear figured glass declined by 45% and 2% in 1998 and 1999, respectively.

The decline in profitability is attributed to declining sales resulting from the surge in total imports of CFG combined with the contraction of the market.

8. Return on Sales

Declining sales and profits led to low return on sales in 1999.

9. Investment and Ability to Raise Capital

RAGC suffered a decline in its income from operation, which, in turn, affected its ability to raise capital. The decrease in income from operation can be attributed to competition from low-priced normal (undumped) imports from other countries, high cost of production, and contraction of the local market due to the regional crisis.

10. Employment and Wages

The surge in imported CFG affected employment and wages as the company undertook cost-cutting measures. In order to reduce operating expenses and consequent losses, the company decided to effect a reduction in manpower by 27%.

5. Conclusions

The Commission concludes that:

1. clear figured glass produced by RAGC and imported clear figured glass are of the same designs, thicknesses and sizes, and are made from similar raw materials;

2. there is no dumping because adjusted export prices are greater than adjusted normal values for clear figured glass with thicknesses of 3mm, 5mm and 5.5mm; and

3. there being no price difference, injury to the domestic industry was due to causes other than dumping.


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).


In view of the foregoing, the elements of dumping not having been established, the Commission orders that the anti-dumping case against PROC be dismissed for lack of merit.

Let copies of the decision be furnished the Protestant, the Protestees and the Embassy of the People's Republic of China (PROC). The Secretary of the Department of Trade and Industry shall, within ten (10) days from receipt of this decision, cause the publication of the dispositive portion of the decision in two (2) newspapers of general circulation.

21 June 2001