Pursuant to Republic Act Number 8800 (Safeguard Measures Act), the Tariff Commission (TC) conducted an evaluation of the effectiveness of the actions taken by the Philippine Testliner Board industry in facilitating positive adjustment to import competition.
After careful assessment, the TC found that the actions that the testliner board industry undertook to improve production efficiencies and increase output were effective in terms of enhancing its competitive position during the period of imposition of the safeguard duty. In 2021 to 2024, when the safeguard duty was no longer in place, the effective measures the domestic industry implemented helped it offer highly competitive prices and remain the dominant player in the market.
While recent market developments have been unfavorable, i.e., the lingering economic impact of the COVID-19 pandemic and weak global demand for corrugated packaging, the industry is showing strong signs of recovery. Moreover, the existence of eight testliner board producers, with the capacity to meet market requirement, can be said to indicate support to the corrugating packaging industry by assuring local supply of testliner board, leading to more robust and locally controlled supply chains that are less susceptible to international tariff disputes or global market fluctuations.