The war on smuggling

Yep, despite perceived efforts to curb smuggling, we’re still tops in the list of countries where smuggling is rampant, actually a way of life even hereabout. The culprit many will point to is the Bureau of Customs where much of the action is naturally. The take permeates the full range, from the top to the security guards, but if we really take the time to scrutinize, where will these smugglers be if we, the citizens don’t patronize these items, mostly luxury items really but definitely not limited to it. If we check out Divisoria, not just the bangketa but the air conditioned malls, we will see dirt cheap items, ordinary household ones like plastic flashlights, extension cords, kitchen gadgets, etc. from China blatantly sold at rock bottom prices. One is hard put to imagine how legitimate manufacturers can sell at those prices and still come out with a small margin of profit. These stalls are manned by Chinese families, Mom, Pop, grown-up kids, and they employ local sales people, most likely their housemaids at home. These Chinese can hardly speak or understand English. Evidently, these families are relatively “bagong salta”, but there are quite a number of them plying their trade in Divisoria. That’s why Divisoria is a haven for bargain hunters, and I’m sure these traders made quite a killing during the Christmas season, depriving our local legitimate manufacturers of their fair share in the market.

The Federation of Philippine Industries under the leadership of its President, Jesus Aranza is seriously concerned about the bold smuggling activities that are seriously undermining the legitimate manufacturers. This organization is composed of industry associations, not individuals.  Tapped by the Administration to head the private sector in the efforts against smuggling, Mr. Aranza is very vocal about the ills of smuggling.  Indeed, it erodes legitimate industries that cannot compete price-wise with these big-time smugglers. The organization was tasked to craft rules to protect the local industry from smuggling and other acts disadvantageous to local industry. Incidentally, only manufacturers count as regular members here, though companies like suppliers of raw materials for instance, or banks that cater to the industry, can be recommended for associate membership in the organization.

The federation is working zealously with Usec Antonio Villar of the Presidential Anti-Smuggling Group to hawkishly watch out for smuggling activities, undaunted by the miniscule budget given to the task force and the skeleton staffing. They claim to have created a dent somehow in the smuggling activities, and cited to us that, while they indeed won a case against a high profile smuggler, they still have to contend with another big fight — our justice system. You can be sure that these parties will employ every tactic in the book, avail of all the legal relief they can muster to delay, delay, and eventually elude justice.

Remember the building under construction that never even saw completion?  That’s because it collapsed while still in the initial phase. The culprit-substandard steel bars.

Steel products like bars, roofing materials, etc., according to Mr. Aranza, are subject to product standards. Substandard steel products are either smuggled outright or mis-declared in order to get around this. The Bureau of Standards, which is under the Department of Trade & Industry is supposed to be the government arm enforcing these standards. Mr. Aranza unequivocally states that the Bureau is also remiss in the performance of its duties as watchdog. They should have a representative right at the Customs area to inspect goods such as these steel products to make sure these importations comply strictly with the standards set by DTI. We’re talking of possible loss of lives, serious injuries and property damage if we allow these defective or substandard steel products to permeate our market. With the current construction boom, there is a high demand for these steels bars, roofing materials, etc., and the times call for more vigilance in checking the construction materials entering our ports.

What happens, according to Mr. Aranza, is that due to space constraints, the Bureau of Standards people cannot be accommodated in the premises. When importations such as those that require product standards arrive, these are given conditional release pending actual inspection by the Bureau of Standards. As you can imagine, these conditional releases can easily turn into permanent releases. This is one loophole that the Federation wants to address.

The Bureau of Standards should be ultimately responsible for goods found in the market, if these fall under the product standard category. These products should have the ICC (Import Commodity Clearance) seal before they are released into the market. But did you know that, as pointed out by Mr. Aranza, the Bureau of Standards allows the importer to print these seals instead of printing it themselves at DTI in order to exercise full control over these seals. If it is costs they are worried about, they should just go ahead and print those darn things and charge the importers for the cost of the seals. Another loophole the Federation is trying to plug.

To be sure, the Federation’s member associations like the Steels Manufacturers Association, the Galvanizer Manufacturers, etc. are policing themselves to make sure that local products fall within safe standards, as is required by the Federation so why do some unscrupulous builders still patronize these substandard products?

The Federation is crying foul over the blatant smuggling, especially of products that could cause loss of lives, limbs and property. I agree with Mr. Aranza that fighting smuggling should not only be the concern of the Bureau of Customs, or the Department of Finance.  It should be a concern of all government sectors as the country stands to lose millions, even billions, and it could seriously undermine key industries in the country.

He takes this further by encouraging the consuming public to give our local products a fighting chance, instead of out rightly snubbing Filipino-made products. His federation, tasked to improve business conditions not only locally but globally as well, is planning to hold a big fair that will showcase the best of Philippine-made products in the very near future. We have made significant strides in the manufacturing of products that can compete globally, and we’re not only talking of Christmas ornaments. We’re talking of garments, furniture, packaged food, etc.  So why not give them a chance?

By now, they should be conducting initial hearings in the Senate on the Federation’s recommendations to plug the many loopholes they have uncovered in their fight to curb smuggling. You can be sure the Federation will be there in full force, led by the indefatigable Mr. Aranza who says he still has to see a smuggler behind bars.

Free Real Estate Seminars to start next week

Remember those free seminars on real estate marketing and sales that we mentioned here some time back? They offer the opportunity for any body from practically all walks of life to learn how to earn, and if dedicated, conscientious and maybe a little lucky enough may just come across a windfall of earnings by engaging in the business of real estate sales.

Philippine Realty Listings have scheduled the seminars to start on January 25 up to January 21 and those who have signified their intentions to attend may now call them up on 631-88-22 to register and choose their most convenient schedule. Those who have not, this is your last chance to attend for free. I guess the next ones would have to be paid for.     

Nothing to lose, all to gain-that’s why we’re pushing it.

Mabuhay!  Be proud to be a Filipino. 

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