Federation of Philippine Industries president Jesus Arranza said local industries are suffering heavily from the effects of smuggling activities in the country.
To stop smuggling in the country, Arranza noted that FPI inked a memorandum of understanding (MOU) with the government, through Anti-Smuggling Intelligence and Investigation Center (ASIIC) created by President Arroyo through Executive Order 155.
ASIIC is taked to investigate the interdict all acts contrary to the Republic Act 1937 also known as Tariff and Customs Code.
Arranza said FPI initiated the MOU to level the playing field so that local manufacturers can compete in both local and global markets.
Under the MOU, the FPI will inform the ASIIC about cases of misdeclaration, misclassification, undervaluation or underdeclaration of the volume of imported goods as well as any other violations of the Tariff and Customs Code.
The ASIIC will act promptly on the information received through seizure of the contraband or otherwise prevent its entry into the local market so that these will not prejudice Philippine manufacturers.
"FPI and ASIIC will cooperate in gathering evidence for the successful prosecution of cases of smuggling," Arranza added.
Arranza is hopeful the MOU will help the economy by increasing revenue collections of the government and ensure national security through the prevention of prohibited smuggled items in the country.
The FPI is also pushing for the thorough screening of papers of suspicious importers to determine their capability to import goods.