Gov't neglect perpetuates smuggling, industry groups say

Smuggling continues to thrive in the Philippines due to government neglect, according to an alliance of industry groups. 

 

Samahang Industriya sa Agrikultura (SINAG) Chairman Rosendo So told reporters on Thursday said the government fails to file formal charges against big-time smugglers and this emboldens more smugglers. 

 

"Kahit mahuli sila o lumabas na ang kanilang pangalan sa mga Congressional hearings, bale wala ito dahil alam ng mga smugglers na hindi sila makakasuhan sa Department of Justice (DOJ) at tuloy lang ang ligaya," he added.

 

But Customs Commissioner Alberto Lina said the government acts on smuggling complaints. He cited the case of businessman David Bangayan, who is allegedly the same David Tan involved in large-scale rice smuggling. 

 

"It is not inaction. It happens all the time. We have more than 2,000 charges filed with the DOJ against smugglers, but we cannot get conviction due to a lot of factors," the commissioner added. 

 

SINAG estimated that at least P39 billion worth of agricultural products were smuggled into the country amid the national attention given to accusations thrown at Bangayan in 2014.

 

For the first six months of the year, SINAG believes that 365,000 metric tons (MT) of rice were illegally imported. This brings the cumulative amount from 2010 to over 3.137 million MT or P94 billion in terms of market value. 

 

The estimates reflects the discrepancies between other countries' reported exports to the Philippines and import figures from the Bureau of Customs in comparable periods.

 

Smuggling poses risks to the profitability of legitimate businesses. For instance, the cheaper price of smuggled goods results in tighter competition at the expense especially of local manufacturers or producers. 

 

Smuggling remains a lucrative business in the Philippines because of the government's failure to bring Bangayan and other identified smugglers to justice despite having gathered pieces of evidence, So said.

 

"Kung hindi ito matugunan ng pamahalaan, lalo lang lalakas ang loob ng mga smugglers," United Broiler Raisers' Association President Elias Inciong told reporters in the same briefing held on Thursday. 

 

So claimed that Bangayan, for one, continue to engage in smuggling operations in the country's southern regions. Bangayan had repeatedly denied being the accused rice smuggler David Tan. 

 

"If there is one na talagang dapat pursigido against smuggling, it should be the government dahil sa laki ng revenues na nawawala bukod pa sa pinapatay talaga nito ang mga magsasaka natin," Atty. Virginia Laxa Suarez said. 

 

In 2014 alone, the government lost an estimated P8.4 billion in foregone revenues from the smuggling of agricultural commodities. From 2010 until June this year, the amount has reached about P38 billion.  — ELR, GMA News