DA bats for provisional tariff on Turkish flour

MANILA, Philippines - The Department of Agriculture (DA) will file by September, a recommendation report to the Tariff Commission (TC) for the imposition of provisional duty on Turkish flour which is allegedly dumped into the country.

In a letter dated July 29 which was addressed to Agriculture Secretary Proceso Alcala, TC chairman Edgardo Abon advised the department to complete the preliminary investigation on the issue and submit its affirmative findings as is required by the law.

Dumping occurs when a country exports a commodity at prices lower than its domestic prices.

The findings should include the petition of the complainants and the answers of the respondents to the complaint. Both parties would be required to present supporting documents.

The DA, in a letter dated July 23, informed the commission that it had initiated a preliminary investigation on the alleged dumping activities in June.

“An initial computation by the petitioners shows that the current seven percent tariff rate may be increased to 20 percent, which would still be subjected to computation vis-à-vis import rules of the commodity at hand. In this regard, we would like to inquire if provisional anti-dumping duties may be imposed pending the result of the preliminary investigation,” Alcala said in the letter.

Small flour millers represented by the Philippine Association of Flour Millers (PAFMIL) petitioned the Agriculture department to look into the alleged dumping of Turkish flour into the country and to recommend to the Tariff Commission to raise the import duty on the commodity to 20 percent from the current seven percent.

PAFMIL represents RFM Corporation, Liberty Flour Mills, Wellington Flour Mills, Universal Robina Corporation, General Milling Corporation, Philippine Four Mills and Pilmico Foods Corporation.

This move is opposed by a group of community bakers represented by the Filipino-Chinese Bakery Association (FCBA), who argue that small bakeries cannot cope with higher operating costs and would lay off employees or close shop.

The group warned small bakers would also have to raise the prices of bread and other flour-based products if duty on Turkish flour is increased.

In an earlier interview, Alcala said that based on the assessment of the Philippine agriculture office in Turkey, the domestic price of Turkish flour was found to be lower than the selling price in the Philippines.

Agriculture undersecretary and Chief of Staff Emerson Palad said Turkish flour importers have been asked to file their position with the DA by August 15. After which, a 30-day evaluation period would follow.

The DA would then file the recommendation report to the TC.

Palad said that if the commission approves the imposition of higher duty on Turkish flour, it would, in turn send a recommendation to the Bureau of Customs.

PAFMIL, in a statement, welcomed the developments, saying the completion of the preliminary investigation has been delayed because Turkish flour traders requested for an extension for the submission of documents.