House: Smuggling = economic sabotage

A BILL defining smuggling as an act of economic sabotage is getting closer to becoming law after the House of Representatives ratified its final version in the chamber, drawing praises from a group of farmers and agriculture industry players that has been lobbying for tougher penalties for the illegal entry of agricultural products into the country.

The bill has received the full support of the Samahang Industriya ng Agrikultura (Sinag), a group of 33 farmers and agriculture associations across the country.

Rep. Romero Quimbo, ways and means committee chair, said he expects President Aquino to sign the proposed Anti-Agricultural Smuggling Act into law after the House and Senate agreed to its final version in the bicameral conference level.

“This law sends a message that government cannot tolerate the illegal entry of agriculture products which causes heavy damage to the agriculture sector,” Quimbo said in a text message.

“Around 65 percent of the population depends on agriculture and this law is for them,” he said.

P182 billion in losses

Rosendo So, head of Sinag, said smuggling of agricultural products has led to billions of pesos in losses for farmers and whatever is left of the local agriculture industry.

“This measure will hopefully put an end to agricultural smuggling, and help the country achieve food self-sufficiency,” said So in a statement.

Quimbo said smugglers have become more brazen due to the absence of tough laws penalizing the dumping of cheap or subsidized farm products in the country. “Part of the reason we’ve not been able to reduce poverty has been our inability to protect our farmers. This law corrects that,” said Quimbo.

Sinag said the amount of agricultural products smuggled into the country from 2010-2014 has reached P182 billion, almost double the contraband value, P95 billion, from 2005-2009.

As a result, according to So, the government lost P60-P80 billion in potential taxes from imported rice, pork, sugar, chicken, onion, carrots and garlic.

“It’s a double whammy,” said So. “On one hand, the government is losing much-needed revenues. On the other hand, those involved in the local production of agricultural products are not able to compete with these smuggled goods,” So said.

Life in jail

The proposed law against smuggling imposes life imprisonment and fine of twice the fair value of the smuggled products and the aggregate amount of taxes, duties and other charges due the imported goods.

Among the acts prohibited are importation of at least P10 million worth of farm products without a permit; using the permit of another person or entity; the sale or lease or consenting of permits for use by other entities; misclassification, undervaluation or misdeclaration of import entries; forming or using dummy corporations or cooperatives to get a permit; transport or storage of smuggled goods; and acting as middle man in releasing these goods.