03/12/2012 (Manila Standard Today) - Local palm growers plan to ask the government to impose a safeguard duty on all palm oil products being imported into the country.

Philippine Palm Oil Development Council Inc. president Erwin Garcia said the group was alarmed over the influx of imported palm oil products from Indonesia and Malaysia.

The council groups local palm growers, who are mostly based in Mindanao.

The council, composed of Kenram Philippines, Filipinas Palmoil, Agumil Philippines, Aberdi and some 5,000 growers, said the imposition of the appropriate safeguard duty on imported palm oil was a mechanism allowed under Republic Act No. 8800.

The law provides that a safeguard duty may be imposed by the government through the Trade Department to protect local industries from an “import surge.”

The government earlier imposed the duty after a similar influx of glass, ceramic and cement imports into the country, the group said.

Safeguards usually take the form of increased duties to higher than bound rate, or standard rates or quantitative restrictions on imports.

Safeguard is a form of temporary relief that gives domestic producers a period of grace to become more competitive vis-à-vis imports.

Garcia said the present surge of palm oil imports was aggravated by the “technical” smuggling of palm oil products, especially involving undervaluation. He said if this was not stopped, the local palm industry would no longer be competitive.

He said the government should take immediate measures to stop the smuggling of palm oil products to encourage investors to continue their palm plantation.