Local plywood makers warn of more job losses

Local plywood makers warned of more job losses if the influx of smuggled and substandard plywood from China continues unabated.

Maila Vasquez, deputy executive director of the Philippine Wood Producers Association, told reporters Tuesday the local plywood industry had been adversely affected by the Executive Order 23.

“Since it [Executive Order 23] took effect, our industry has been hard hit by the influx of smuggled plywood from China,” Vasquez said. “The importation [of plywood] from China surged since such law created a lot of demand from here.”

The Palace directive, which took effect in February, declared a moratorium on the cutting and harvesting of timber in the natural and residual forests. It also created an anti-illegal logging task force.

She said cheaper China-made plywood had eaten up at least a fourth of the local plywood market since EO 23 became effective.

Data from China show that it exports at least $3 million worth of plywood to the Philippines every month.

Data from the Philippines, however, showed only $707,000 worth of plywood arrived in the country during the same period.

“Where did the $2.3 million of the $3 million go,” asked Vasquez.

She said while the local plywood’s price was almost the same with that of China’s at P330 per 5 millimeter of a 4 X 8 feet sheet of plywood, the smuggled product had more advantages after evading payment of the corresponding 5-percent tariff and value-added tax VAT.

“All we want is for the Bureau of Customs to be more vigilant in terms of letting in plywood shipment from China. Otherwise, we expect substantial job losses next year,” Vasquez said. “We do not ask for safeguard duties, we know they are doing their job but we need more vigilance.”

She noted that since February, no smuggler of plywood has been caught yet by Customs, which has been stepping up enforcement via its Run After The Smugglers program and filing cases in court. –Elaine R. Alanguilan, Manila Standard Today