DA imposes anti-dumping duty on Turkish flour

MANILA, Philippines - The Department of Agriculture (DA) has ordered the imposition of anti-dumping duties on imported Turkish flour following the affirmative findings of the Tariff Commission (TC) that such imports are detrimental to the economy.

In Department Order No. 10 dated Nov. 17, Agriculture Secretary Proceso Alcala  ordered the imposition of anti-dumping duties ranging from 0 to 16.19 percent on flour exports of 17 Turkish suppliers for a period of five years, as recommended  by the TC in a decision dated Nov. 11.

New exporters or producers of Turkish flour who have not exported to the Philippines during the period of investigation on the dumping allegation would be subjected to a review. No anti-dumping duties, however, would be imposed during the review.

A provisional duty, however, may be required to ensure that in the case of affirmative findings of dumping, the duty may be levied. If a new exporter under review is found to be committing dumping, an anti-dumping duty may be levied retroactively up to the date of the initiation of the review.

The order would take effect upon the issuance a memorandum order by the Bureau of Customs.

The TC recommended the imposition of the anti-dumping duties after a formal investigation on the petition filed by the Philippine Association of Flour Millers, Inc. (PAFMIL) that local flour cannot compete with Turkish flour which are sold in the country at dumping prices.

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

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

The DA, in April, imposed provisional anti-dumping duties on Turkish flour, having found positive cases of dumping by several importers.

Imposed in addition to the seven percent regular import duty on flour is a provisional duty of as high as 35 percent on hard flour used for making bread, 39.26 percent on biscuit bread and 35.21 percent on soft flour which is used for pastries and cookies.

The provisional duty was collected while the TC was determining if a permanent anti-dumping duty would be imposed.

The period of investigation for the determination of dumping activities covered import transactions from Jan. 1 to Dec. 21, 2012.