Government urged to crack down on erring exporters

The Arroyo administration is being urged by Smuggling Watch, a private-sector task force, to crackdown on exporters who divert some of their imports to the domestic market.

According to Jesus Arranza, Smuggling Watch chairman, all exports should be inspected and certified by an independent agency for availment of export incentives.

He revealed that some unscrupulous exporters have in their bonded warehouses import components more than twice their requirement without the payment of taxes and duties.

He said they also resort to exporting empty or half-filled containers and use fake export documents in liquidating their imports.

Smuggling Watch recommends that government should require the payment of duties and value-added-tax (VAT) on all imports.

More specifically, Smuggling Watch said the payment of duties and VAT should be 100 percent required from exporters, and partial payment for exporters and manufacturers serving local markets.

Additionally, Smuggling Watch said, no new bonded warehouses should be granted and the operation of common bonded warehouses (CBWs) should be stopped, especially for trading activities. The government should also closely monitor the remaining CBWs.

Smuggling Watch further recommends the creation of an anti-smuggling commission to be headed by the Secretary of Finance with membership from government agencies concerned and private trade organizations. – Marianne Go