Probe of flour smuggling claim sought

MANILA, Philippines–Trade groups have called on the government to look seriously into the Turkish flour smuggling allegations raised by the Philippine Association of Flour Millers (Pafmil), stressing that an isolated and unfounded case should not damage the reputation of legitimate flour exporters and importers.

Ernesto Chua, president of Malabon Longlife Trading Corp. and chair of the Philippine-Turkish Business Council, said Turkish flour importers in the Philippines had always been above board.

“There should be a concerted effort to look into this alleged shipment of mislabeled and undervalued flour to General Santos City. As lawful importers of Turkish flour, we insist that the government put an end to those who conduct prohibited business practices that damage the reputation of all flour importers,” Chua said.

The Turkish Flour Yeast and Ingredients Promotion Group (TFYI), an organization of traders that export and promote Turkish products to international market, has also asked authorities to investigate the issue.

TFYI chair Turgay Unlu said Pafmil’s claim was a “serious matter that must be backed by solid evidence and addressed through proper channels. Nevertheless, one isolated and unfounded case does not sanction the group to mar the reputation of other legitimate imported flour exporters and local importers and the entire flour industry.”

Unlu said TFYI “categorically opposes any and all fraudulent activities and practices that cast doubt on the conduct of business of flour importers in the Philippines in general.”

According to Unlu, such unlawful practice is an “insult to law-abiding businessmen like TFYI members, who value the trust and confidence critical to the long-standing relationships they have built with the markets they serve, as well as the tradition of integrity that sanctions their continued existence in the export business.”

Last month, Pafmil issued a statement alleging that shipments of imported Turkish flour were being smuggled into the country and declared as Indian flour to enable some importers to evade payment of dumping duties.

The technical smuggling allegation was said to have been proven by the Bureau of Customs (BOC) in General Santos City. The Customs office found a shipment containing 1,800 bags of flour that were declared to be from India, but were actually produced in Turkey, Pafmil executive director Ric M. Pinca said.

Flour from India has no dumping duty and enjoys a tariff rate of only 7 percent.  In contrast, dumping duties of 2.87 percent to 16.19 percent are slapped on 13 Turkish flour millers.–Amy R. Remo