Can the Tariff Commission amend an Executive Order?

Can the Tariff Commission amend an Executive Order of President Gloria Macapagal-Arroyo?

This was the reply of Tariff Commission’s Officer-In-Charge Edgardo Maralit to a Bureau of Customs’ memorandum circular containing Sugar Order No. 7 by the Sugar Regulatory Administration.

The issue was brought forth by the delisting Kraft’s "Tang" from ABTN heading 17.01.

The reclassification of "Tang" means that it will pay only a tariff duty of 10 percent under the most favored rate of duty and three percent duty under the Asean Fair Trade Agreement (AFTA).

This will also virtually do away or offset Executive Order No. 295 issued on March 3, 2004, which provides that premixes containing over 65 percent by dry weight of sugar shall be classified as sugar and will have 48 percent tariff.

Reynaldo Bantug, president of the Confederation of Sugar Producers Associations Inc. (Confed), tossed the Kraft issue to the Negros-Panay Chapter of the federation over the weekend.

Bantug pointed out that San Miguel Corp. and Robina are paying the tariff duty based on EO 295, which also provides that premixes shall be classified according to EO 295 alone and not under any presidential decree of executive order.

Confed trustee Roberto Cuenca pointed out that it was the Tariff Commission itself which had recommended the issuance of the EO following an uproar from the sugar industry over the estimated 65,000 metric tons of premixes that will be imported this year alone.

This has threatened the refineries and endangered and livelihood of some 500,000 sugar workers.

The Tariff Commission’s suggestions were submitted to the Cabinet which, subsequently, recommended its enactment into an executive order.

Besides, pointed out Bantug, the laboratory analysis of the SRA shows that Tang Pineapple and Tang Orange, two of Kraft’s products, contained 90.12 percent and 91.6 percent sucrose content, respectively. These were way beyond the 65 percent dry weight sugar content specified by the EO.

US classification

The United States Customs from whose tariff schedule the Philippines adopted the 65 percent sugar content threshold, "consistently classify Tang and similar powdered concentrates under Heading 1201, Bantug contended.

Moreover, contended the legal panel of Confed, the World Customs Organizations (WCO) Explanatory notes, which customs authorities worldwide adhere to, provide that powders which have the character of flavored or colored sugars used for the preparation of lemonade and the like (such as Tang products) are excluded from Heading 2106 and instead fall under: Heading 1701.

Because these products contain 65 percent sucrose and even up to as high as 99 percent sucrose by dry weight, they are "basically and primarily sugar," stressed Bantug.

Maralit contended that although these products contain more than 65 percent sugar, they are finished food preparations. Thus, they should not be classified as of sugar under Heading 1701.

Mike Hinoales, another Confed trustee, asked Bantug to elevate the issue to the Philippine Sugar Alliance.

Bantug said that the PSA is already aware of the problem and has already directed its lawyers to study ways to ensure that the law is complied with and that EO 295 will not be sidelined by the opinion of an OIC of the Tariff Commission.

This issue could open the floodgates to the entry here of premixes which do not contribute to job employment and instead rob the sources of livelihood of sugar workers and sugar producers.

A spokesman of Kraft had called my office and explained that the local cost of production makes Tang uncompetitive. He promised to give me a copy of the firm’s position paper.

As of press time, however, the paper has yet to reach this writer.

Kraft, it was learned, has no more local plants producing products but has been importing purportedly from Thailand.

The pot is definitely boiling. But the bottom line is simple: Can the Tariff Commission issue an opinion contrary to an executive order signed by the President?

Lomibao orders probe on harassment of media people

On the eve of the Multilevel Summit on Crime, Philippine National Police (PNP) Chief Arturo Lomibao ordered a full investigation of the alleged harassment of three Bacolod mediamen by the police.

The investigation will also include complaints filed by broadcaster Johnny Diaz of Iloilo’s MBC-Aksyon Radyo.

Lomibao wrote to Salvacion Varona-Zaplas that he had ordered Regional police chief Doroteo Reyes to take action on the complains of Visayan Daily STAR Gilbert Bayoran and RPN TV 8 anchor Annie Calderon against the driver-bodyguard of PNP provincial Director Charles Calima who allegedly nearly sideswiped them at the PNP Compound in Camingawan last April 28.

The respondent is PO3 Reynaldo Reyes, security and driver of Calima.

On April 28, Reyes was reportedly driving Calima’s Nissan Frontier pickup vehicle and nearly sideswiped the mediamen, including the son of Ms. Calderon.

Another Bombo Radyo reporter also filed a complaint of simple misconduct against Calima, which stemmed from the humiliation he allegedly suffered when Calima snubbed him for 20 minutes on April 26 at the provincial police headquarters.

Diaz, on the other hand, claimed he had received death threats from senior police officers who were alleged protectors of drug syndicates. He surmised that the threats are connected to his exposé on illegal drugs in Iloilo.

This is something which local mediamen are watching with keen interest. Bayoran is president of the Defense Press Corps. while Ms. Calderon is the vice president. Both belong to the press organization that recently presented awards to honor policemen and PNP officers of Negros Occidental.

One Island Region

Negros Oriental Gov. George Arnaiz and Negros Occidental Gov. Joseph Maranon gave added impetus to their One Negros Island region campaign with the signing of an agreement to build a road network linking the two provinces and building an auction market at the border.

The P5-million project includes a spillway, road improvements, and construction of an auction market as well as site development of the boundaries of Kabankalan City and Ayungon town of Oriental Negros.

Both provinces will develop a possible route from Ayungon of Oriental to Carol-an of Kabankalan City in Occidental. This includes construction of a bridge at the Carol-an River to link the two provinces.

Meanwhile, Silliman University (SU) is reportedly sending a team of 11 debaters and adjudicators to the Asian University Championship to be held from May 24 to 29 at Nanyang Technological University in Singapore.

SU is the only debating institution from the Visayas registered in this year’s Asian Debate.

Well, here’s our best wishes to the three SU teams.