Anti-smuggling group seeks tighter import controls

MANILA, Philippines – An anti-smuggling coalition is calling for tighter inspection procedures and controls over imports following the questionable entry of about P95 million worth of suspected substandard steel products at the Subic Bay Freeport last month.

The Fight Illicit Trade (Fight IT) movement, which comprises major players from most commonly smuggled goods such as rice, sugar, corn, palm oil, tobacco, steel, cement, and ceramic tiles, questioned the Department of Trade and Industry’s issuance of a provisional import commodity clearance (ICC) for the entry of 5,000 metric tons of deformed steel bars into the Philippines from China. 

Philippine Iron and Steel Institute president Roberto Cola had asked the Bureau of Customs to seize the shipment amid suspicion the steel bars consigned to Mannage Resources Trading Corp. were being smuggled into the country.

Cola said the inspection of the steel bars was  “done in haste and utmost secrecy” and without representatives from the steel industry.

“We understand that only three samples were tested and these samples were taken without a witness from the BoC and an industry technical expert of the Federation of Philippine Industries (FPI),” Cola said in his letter to trade and  industry secretary Adrian Cristobal last May 23.

Jesus Arranza, chairman of Fight IT and FPI, confirmed that there was no industry technical expert to witness the inspection and testing of the questionable shipment.  He cited an agreement forged between the BOC and FPI which  requires representatives from both parties to be present during inspection of suspected smuggled shipments.

“We call on the DTI to ensure transparency and apply the same stringent quality examination applied to locally made products in dealing with these types of suspicious shipment. There should be no special treatment” Arranza said.

He said this form of illicit practice robs consumers of their hard earned money and poses a threat to security and safety of Filipino consumers.

“In recent natural disasters like the earthquake in Bohol and flooding caused by typhoons, many properties destroyed were found to be made up of sub-standard construction materials...We call on the DTI to ensure transparency and apply the same stringent quality examination applied to locally made products in dealing with these types of suspicious shipment. There should be no special treatment” Arranza said.

The steel bars from the Hangzhou CIEC Group Co. Ltd. were loaded on the Well Faith vessel which left the port of

Shanghai last April 14 and arrived at the Subic Bay Freeport last April 25.

An official of DTI, however, said the steel bars had passed mechanical and chemical requirements for imported steel bars based on the evaluation made by the Bureau of Product Standards.

Fight IT was established last year mainly to curb smuggling, protect consumers and safeguard revenues of both private businesses and the government. It has been working closely with the National Bureau of Investigation (NBI) and the BOC to stem the rising  smuggling rate in the country.

Smuggling has been deemed as one of the top constraints that continue to hamper the competitiveness of domestic industries.