Inaction on smuggling cost PH P37B

DAGUPAN CITY—More than P37 billion in agricultural goods had been smuggled into the country in 2014 partly due to government inaction and the Senate should start investigating this massive loss of potential revenue, according to a coalition of farmers and farm irrigators.

Rosendo So, head of the Samahang Industriya ng Agrikultura (Sinag), said one proof of government inaction against smuggling is the continued operation in Mindanao of a businessman who had been investigated at the Senate for rice smuggling.

In a statement, Sinag said comparing records of the United Nations Trade Statistics Database (UNTSD) with those from the Department of Agriculture and the Bureau of Customs (BOC) would prove that rampant smuggling of agricultural products continues.

Sinag is a coalition of 33 farmers’ and irrigators’ associations that has been at the forefront in the fight against smuggling.

“It is a double whammy for Filipinos. On one hand, the government is losing much-needed revenues,” So said.

“On the other hand, those involved in the local production of agricultural products are not able to compete with these smuggled goods,” he added.

Data from the UNTSD and the Vietnam Ministry of Industry and Trade showed a total importation volume of 2.3 million metric tons for the Philippines last year.

The figure accounts for 1.4 million MT of rice from Vietnam; 353,000 MT from Thailand; 330,000 MT from China, 220,000 MT from India; 34 MT from the United States; 52 MT from Pakistan; 294 MT from Japan; and 30 MT from Italy.

However, records from the BOC showed only a total importation volume of 1,582,392 MT of rice for 2014, So said.

“This discrepancy accounts for 721,018 MT of rice smuggled into the country last year,” So said.

“Smuggled rice alone accounted for P21.6 billion. Five other agricultural products that were illegally brought into the country makes for a total of P37.3 billion in smuggled goods,” So added.

So said at least 50,258,358 kilos of pork worth P8.7 billion; 15,332,467 kilos of chicken worth P1.9 billion; and 4.2 million kilos of buffalo meat worth P1.05 billion found their way into the country illegally.

At least 2.27 million kilos of onions worth P113.5 million and 39.9 million kilos of garlic worth P3.99 billion were also smuggled into the Philippines in 2014.

So said he will present the data tomorrow to the Senate committee conducting an investigation into the illegal entry of fake rice from China.

So said David Tan, also known as Davidson Bangayan, was arrested by the National Bureau of Investigation in February 2014 for violation of the Anti-Electricity Pilferage Act.

Tan was arrested after he was grilled at an inquiry conducted by the Senate agriculture and food committee regarding rice smuggling operations in the country.

But Tan was released after paying a P40,000 bail, So said, adding that Tan is “still active in Mindanao.”

“Unresolved cases like Tan’s inspire speculation as to why smuggling of agricultural products remains rampant,” said So.

He said Sinag is working for the passage of a bill to make agricultural food smuggling a form of economic sabotage, to help local producers and manufacturers compete and eliminate unfair competition. Yolanda Sotelo, Inquirer Northern Luzon