Duty-Free CPO Export Quota At 3.6M Tons

05 Feb 2012

Duty-Free CPO Export Quota Issued To Wilmar, IOI Corp, Felda

Malaysia, the world's No. 2 palm oil producer has set its duty-free export quota for crude palm oil at 3.6 million metric tons for the year ahead after several weeks of delay, industry executives said late Saturday. Three industry executives said separately major palm oil exporters Wilmar, IOI Corp. and Felda were among the first few major exporters to receive licenses to export the tax-free oil. Malaysia's issuance of the duty-free export quota could boost palm oil exports from the country in February as exporters rush to fulfil export contracts and slow a build-up in end-month palm oil stocks. A government official said major plantation firms Sime Darby Bhd. (4197.KU) and Kuala Lumpur Kepong Bhd. (2445.KU) will likely receive their duty-free CPO export quota on Wednesday. Malaysia doesn't impose tax on refined palm exports but sets a high duty of 23% for CPO shipments to protect its downstream palm oil processing industry. Malaysia issued around three million tons of duty-free CPO export quota for plantation firms with overseas refineries in 2011.