RSPO Supports Dutch Industry's Call on the EU to Abolish Import Duty on Sustainable Palm Oil

The Dutch Oils and Fats sector believes that abolishing the EU import duty on sustainable palm oil will serve to offset most of the additional costs to produce sustainable palm oil and will help to remove a significant barrier to its market uptake in Europe.

Sep 22 2011 --- The Roundtable on Sustainable Palm Oil (RSPO) supports the Dutch Product Board for Margarine, Fats and Oils (MVO) in its call on behalf of Dutch Oil and Fats sector, for the European Union (EU) to abolish the import duty on RSPO’s Certified Sustainable Palm Oil (CSPO).

Currently, the EU is charging a 3.8% duty on crude palm oil imported into Europe. The Dutch Oils and Fats sector believes that abolishing the EU import duty on sustainable palm oil will serve to offset most of the additional costs to produce sustainable palm oil and will help to remove a significant barrier to its market uptake in Europe.

The MVO’s proposal requests that the EU levy on RSPO’s CSPO imported from Malaysia and Indonesia for use in consumer goods be abolished. Currently, crude palm oil for use in non-food products and palm oil originating from nearly all other producing countries are exempted from import duties.

Darrel Webber, RSPO Secretary General, commented: “The Dutch industry initiative once again places the Netherlands, the largest palm oil importer and processor in Europe, at the forefront of spearheading market transformation towards sustainable palm oil.  The RSPO commends and supports the MVO’s resolution aimed at stimulating demand for sustainable palm oil.”

“Since the beginning of the certification process in 2008, we have witnessed increased accountability on the part of our sustainably operating palm oil producers. This has resulted in CSPO now boasting close to 5 million metric tonnes, equal to 10% of global palm oil production – an exceptional accomplishment for a commodity with such a highly complex supply chain as palm oil.

“RSPO has achieved this important result thanks to the commitment of its member companies. They understand the importance of producing palm oil responsibly and sustainably to the benefit of our people and our planet. In addition, the commitment towards 100% CSPO by 2015 on the demand side by many established global organizations - including processors, traders, consumer goods manufacturers and retailers - has been a major driver in getting growers on board.

“While such developments are a crucial step in the right direction, as demonstrated by the growing uptake of CSPO from 26% in 2009 to 56% in 2010, it is imperative that market uptake of sustainable palm oil accelerate at a greater pace to match the increasing rate of production. Industries should embrace the use of CSPO.

“The RSPO looks forward to future opportunities for dialogue and cooperation with EU decision-makers regarding the proposal made by the MVO.” Webber concluded.

The Netherlands, the fourth-largest country by RSPO membership, is also the second-largest EU consumer market in the RSPO, after the United Kingdom.