Trade group gets power in drive vs smugglers

A local industry group expressed fears yesterday that the global crisis will lead to more cases of technical smuggling in the country, especially with Chinese manufacturers having difficulties in selling to major markets.

With this, the Federation of Philippine Industries (FPI) asked the Presidential Anti-Smuggling Group (PASG) to deputize the different labor organizations in the country to add more muscle to the fight against smuggling.

In a meeting last Friday at the Sulo Hotel in Quezon City, PASG and the different labor groups led by the Philippine Employer-Labor Social Partners Inc. (Pelspi) agreed to forge a Memorandum of Agreement (MoA) formalizing the entry of the workers’ organizations in the multi-sectoral campaign versus smuggling.

FPI president Jesus Arranza said the signing of the MoA will be done when former Sen. Wigberto Tañada, the president of Pelspi, arrives from the United States at the end of the month.

“We are very happy because FPI and PASG will now be reinforced by a very strong labor group. This will tremendously increase the number of deputized allies of PASG,” Arranza said.

At the Sulo Hotel meeting Friday, PASG head Undersecretary Antonio “Bebot” Villar Jr. said the labor groups can now start aiding the agency in the fight against smuggling even if the MoA is still unsigned.

Arranza said this is part of their preparation for the expected influx of imported goods that will most probably come in undervalued, which is a form of technical smuggling.

“Considering the slowdown in the major export destinations of Chinese products and even in its domestic market, we have to expect that this will happen. This is why we have to start strengthening our campaign against technical smuggling,” Arranza added.

Even before the crisis, Philippine industries have been complaining against the rampant technical smuggling of imported products, particularly the Chinese-made goods that are coming in either undervalued, misclassified or misdeclared.

He said the labor groups are aware that technical smuggling has been causing job losses in the country because domestic manufacturers are unable to compete with the smuggled imported goods that are being sold much cheaper than the locally made products.

Under the proposed MoA, parties involved are committed to do “all that may be necessary or requisite to protect the interests of various industries in the Philippines and assist the national economy by preventing the unlawful deprivation of the government of much-needed revenues; prevent imported goods from unfairly competing with legitimate businesses in the Philippines and ensure national security via the prevention of prohibited articles from entering the country.” –Ayen Infante, Daily Tribune