Tariff Commission slaps Turkish flour anti-dumping duty

The Tariff Commission slapped a definitive anti-dumping duty as much as 16.19 percent against wheat flour imports from Turkey for a period of five years affirming the preliminary findings by the Department of Agriculture that the cheap flour imports from Turkey pose material injury to local flour millers. Local flour millers, however, was not happy with the rate stressing the Commission should have imposed a higher punitive import duty.

The Commission imposed a definitive anti-dumping duty range from 0-16.19 percent of the export price on 17 Turkish flour exporters in a decision dated Nov. 11, 2014.

“The Commission, having established that the threat of material injury to the domestic industry is imminent, hereby orders that anti-dumping duties be imposed on imports of wheat flour originating and exported from the Republic of Turkey for a period of five years,” stated the decision signed by Tariff Commission Chairman Edgardo B. Abon.

Under Republic Act 8752 or the Anti-Dumping Law of the Philippines, the Secretary of Agriculture is given ten days from receipt of the Commission’s affirmative final determination within which to issue a Department Order imposing the anti-dumping on the imported product or commodity. The Agriculture Secretary will have to furnish the Secretary of Finance with the copy of the order and requires the latter to direct the Commissioner of Customs to collect within three days from receipt of the definitive antidumping duty.

Turkish importers covered by the punitive dumping duty include Unay Gida Nak San Ve Tic Ltd. Sti ( 16.19%); Dost Gida Sanyi Ve Ticaret A. S. ( 15.43%; Tekinak Gida Sanayi Ve Ticaret A. S. ( 13.72%); Tekirdag Un San Ve Tic Ltd. Sti ( 12.605); Karahan Degirmencilik Ltd. Sti ( 7.91%); Adkuy Gida Traim Tarim Ins Nak San ( 5.90%); Erister Gida Sanayi Ve Ticaret ( 5.07%); Eksun Gida Tarim San Ve Tic A. S. ( 4.72%); Turun Gida Tarim San Ve Tic A. S. ( 4.60%); Kale Madencilik San Ve Tic A. S. ( 3.55%); Doruk Mamara Un Sanayi Citigi A. S. ( 3.12%); Ulusoy Un Sanayi Ve Ticaret (3.04%); and, Ulas Gida Un Teksil Nakliye Ticaret Ve Sanayi A. S. ( 2.87%). Four other exporters are charged zero antidumping duty while all the other exporters are charged 16.19 percent

For those Turkish exporters or producers of wheat flour who have not exported to the Philippines during the period of review, their individual margins of dumping shall be determined following a review which shall be initiated and carried out on an accelerated basis, provided that such exporters or producers can show that they are not related to any of the exporters or producers in Turkey who are subject to anti-dumping duties.

No anti- dumping duties shall be levied on imports from such exporters or producers while the review is being carried out, the Commission said.

The Philippine Association of Flour Millers ( PAFMIL) was disappointed with the anti- dumping duty although it was thankful that a definitive anti-dumping duty was finally imposed.

“PAFMIL believes that the dumping duty should be higher, but is thankful that a dumping duty is imposed as this allows a certain level of parity that was not available to local flour millers before,” said PAFMIL Executive Director Ric Pinca in a statement.

Pinca admitted that PAFMIL fought an uphill and difficult fight to win this case. The Tariff Commission's process is very thorough and highly technical but a fair and transparent one, he said.

“The Commission's decision imposing dumping duty on Turkish flour is a moral victory for the Philippines. We have proven that Turkey is dumping flour in the Philippines, an unfair trade practice not allowed under World Trade organization rules and against the country's Anti- Dumping Law,” he said.

The Commission's decision affirms an earlier finding of dumping by the Department of Agriculture which imposed a provisional dumping duty on Turkish flour in April this year. DA referred the case to the Tariff Commission for final determination.

Ernesto Chua, owner of flour trader Malabon Long Life, said they are not affected by the imposition of the anti-dumping duty because they have long shifted importation from other countries like Indonesia and Australia.

“The supply for wheat flour for the Christmas season will not be affected,” he assured. An estimated 100,000 metric tons of Turkish flour have already arrived in September this year, he added.

Importers claimed their imports account for less than 10 percent of the country’s total flour supply, which is estimated at

During the imposition of the provisional anti-dumping duty, flour importers said imported Turkish flour would still end up P100 cheaper per bag than the local soft flour.

Turkish flour, which is 90 percent soft flour, is used for the production of noodles, biscuits, lumpia wrapper, and others, but not for loaf bread. Some neighborhood bakeshops are using Turkish flour for pandesal.

Prior to the imposition of the antidumping duty, Turkish flour accounts for 7 percent of the total flour supply in the country while the local flour millers, which rely their supply of high-protein wheat from the US, accounts for the majority or 90 percent of the total local market.

Turkish soft flour is being sold for only 720 per 25 kilogram bag against the locally milled hard flour of 850 to

920 per bag. (BCM)