Gov't vows to put more teeth on efforts against smuggling

(Updated 5:04 p.m.) Cabinet officials have vowed to increase convergence and integration among state agencies as they plan new programs that would put more teeth on efforts against oil smuggling. In a report by GMA's Bernadette Reyes that aired on nightly news “Saksi” on Tuesday, Energy Secretary Carlos Jericho Petilla said the stricter monitoring of petroleum products sold locally will be implemented by the Department of Energy (DoE).  “Meron kaming mga machines na binili pa lang to test the quality of the fuel. Doon natin mahuhuli yung smuggler e,” Petilla said. Admitting that monitoring imports is not a walk in the park, Bureau of Customs (BoC) Commissioner Ruffy Biazon said his department is partnering with other state agencies in curbing smuggling. “May mga areas na maaring bagsakan ng mga produkto ngunit walang presence ang BoC. Iyan ang mga areas naman kung saan kami nakikipagtulungan ng ibang ahensya tulad ng Armed Forces of the Philippines at Philippine Navy,” he said in the Saksi report. Even with the BoC and DoE's heightened efforts, Finance Secretary Cesar Purisima said the government will soon restrict entry of imports at risk of smuggling, like oil and steel, to selected ports. In a statement Tuesday, Purisima said that the DoF will soon implement a system of port accreditation for commodities at high risk of smuggling. “The port accreditation system will prevent 'port shopping,' and hinder unethical importers from literally evading tax collection,” he said. For its part, Malacañang said Tuesday the government is trying its best to combat smugglers. Presidential Spokesperson Edwin Lacierda told a briefing at the Palace that there are on-going efforts such as the BoC's Run After the Smugglers (RATS) program—which has filed nine cases before the Department of Justice—and the Bureau's “full implementation” of  Revenue Regulation 2-2012, which requires firms to pay up-front tax and duties on imported oil. These efforts, however, could be a little too late, said to industry group Independent Philippine Petroleum Companies Association (IPPCA). IPPCA chairman Fernando Martinez claimed they have long appealed for the government to use invisible markers to catch oil smugglers but to no avail. “Kunan mo lang ng konting vial iyan e, in a few seconds alam mo na yung quantitative marking kung 50 percent complied, 100 percent, 10 percent. It's up to revenue agencies to implement and we're willing to cooperate,” he said in Reyes's report. In the statement, Purisima noted that a discrepancy of 39.3 million barrels of oil was revealed by government records on the supply of imported crude and actual demand in 2011, indicating that the shortfall was likely covered by smuggling or illegal shipments of the commodity.  “Current data” from the BOC show that only 67.6 million barrels of oil were imported in the same year, “signifying a discrepancy of 39.3 million barrels that [were] likely made up through smuggling,” the DoF said. According to Reyes's report, the nearly 40 million barrels of “likely” smuggled oil could have funneled billions of pesos into state coffers and used to bankroll construction of classrooms, hospitals and roads. Blow to confidence in PHL Other than missing out on potential revenues, failing to provide a level playing field by curbing smuggling also results in lower inflow of direct investments to the country, Chevron Philippines Inc. said on Wednesday. “[T]he Philippines is missing out on vital foreign direct investments because there is limited confidence that the government can provide a level playing field for all industry participants,” Pete Morris, Chevron Philippines' country chairman and general manager for international products, said in a statement. “The extent of forgone revenue from taxes arising from illegal activities like smuggling does not always result to lower pump prices, but rather only enriches the pockets of certain middlemen and other unscrupulous personnel involved in the whole gamut of smuggling activities from the time of importation of the fuel products to the sale thereof to the end consumers,” he added. Chevron also threw its support behind current government initiatives against smuggling and suggested stronger national-local government partnerships, particularly in penalizing retail outlets that do not meet petroleum standards and do not issue receipts. — Siegfrid O. Alegado/BM, GMA News