Enrile seeks dismantling of Customs bonded warehouses

Local manufacturers as well as agricultural workers may soon find themselves further reeling from the influx of imported goods due to the existence of Customs bonded trading warehouses (CBTW), former Sen. Juan Ponce Enrile has warned.

Enrile, a former commissioner of the Bureau of Customs, appealed to the government to stop the practice of several businessmen of importing goods through the CBTW.

"Chicken parts, vegetables from Australia, umbrellas, food seasonings, T-shirts are being imported into the country through the CBTW," Enrile said in his radio program.

President Arroyo has ordered the Customs bureau to dismantle the CBTW, but the operators were reportedly given a three-month grace period which will end in December.

CBTW was launched by former Trade Secretary Jose Concepcion, owner of RFM Corp., during the Aquino administration. The project was intended for small and medium-size industries whose imported raw materials were kept at the CBTW.

Under the law, these businessmen can only import their raw materials needed by their companies, but CBTW has reportedly been marred by irregularities.

"That is why the government is going bankrupt," Enrile pointed out. "The Bureau of Customs is supposed to generate funds for the government, but now can the agency even meet its collection target when its policies are flawed."

The bureau has issued an administrative order to eliminate CBTW, but many port users reportedly lobbied the finance department to place the matter under review.

Operators of CBTW, several traders at the pier claimed, are "easier to talk to and less expensive."

"What will happen to our local businessmen and agricultural workers. With the entry of imported goods into our market, the future really looks dim for them," Enrile said.

He also assailed the government’s move to make "buildings" as special economic zones, saying duty-free shops were primarily established to allow returning overseas Filipino workers, balikbayan and outbound travelers to buy their pasalubong from these stores. "Duty-free shops are acceptable if they operate at the airport and pier."