Tariff body sets probe on Turkish flour importation

MANILA, Philippines - The Tariff Commission is set to start a formal investigation to determine whether permanent anti-dumping duties on Turkish flour should be imposed.

In a published notice yesterday, the Tariff Commission said it would hold a preliminary conference for the formal investigation on May 2.

“The Tariff Commission hereby gives notice of the institution of a formal investigation on the dumping protest against the importation of wheat flour from the Republic of Turkey,” the notice read.

A formal investigation is being conducted based on an affirmative preliminary determination of dumping by Agriculture Secretary Proceso Alcala and his endorsement of the case to the Tariff Commission.

In an order published on Wednesday, the Department of Agriculture (DA) said it is imposing provisional duty of 35 percent on hard flour used for making bread, 39.26 percent on biscuit bread, and 35.21 percent on soft flour used for pastries and cookies, on top of the seven percent regular import duty on flour.

The order takes effect 15 days from the date of its publication in two major newspapers.

The provisional import duties would be in place for four months while the Tariff Commission conducts a formal investigation to determine if a permanent anti-dumping duty should be imposed.

The DA has decided to impose provisional anti-dumping duties based on its preliminary investigation on a petition filed by the Philippine Association of Flour Millers Inc. (PAFMIL).

In its petition, the PAFMIL claimed that local flour could not compete with Turkish flour being sold in the country at dumping prices.

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

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

 As of November 2012, Turkish flour is sold in the Philippines at $348 per metric ton (MT), lower than its domestic price of $470 per MT.

Flour is sold to bakers at P700 to P750 per 25 kilogram bag against a price of P750 to P900 per 25 kilogram bag for locally-milled flour.