DA chief: Import ban will not undermine canned fish production

Agriculture Secretary Francisco Tiu Laurel Jr. on Friday defended his decision to ban the importation of certain species of fish, saying it would not undermine production of canned fish, particularly mackerel.

In a statement, Tiu Laurel explained that importers “technically” are allowed to “import 10% more than what they are using now.”

“So, I don’t see any reason why they fear a possible shortage in the supply of mackerel for canning,” he said.

The Agriculture chief issued the statement after the Canned Sardines Association of the Philippines warned that prices of canned mackerel may increase following the directive of the DA to suspend the issuance of import clearances for galunggong or round scad, mackerel, and bonito.

On April 1, Tiu Laurel issued Department Administrative Order (DAO) No. 14, series of 2024, suspending the issuance of sanitary and phytosanitary import clearances of galunggong, mackerel, and bonito after receiving reports that these fish imported for canning, processing, or institutional buyers are being diverted to wet markets.

Tiu Laurel said at least 90,000 to 100,000 metric tons of the three fish products are diverted to wet markets every year.

The DAO No. 14 will indefinitely suspend issuance of permits and clearances for importation of the three fish species starting April 16.

The same order, however, allows “the importation of mackerel for canning purposes provided that the volume thereof shall be based on VATable sales of the canned products from the previous year with additional 10% of said sales for buffer.”

Tiu Laurel said the problem arose as some "crafty" importers diverted and sold part of their frozen fish inventory to wet markets, where the sale of marine products are exempted from value-added tax.

"The problem is diversion. If they (importers) imported mackerel and diverted it to wet markets, they will fall short [of their required supply]," he said.

Tiu Laurel said the implementation of DAO No. 14 later this month is also “precisely timed to coincide with the start of the open fishing season.”

The DA implements a closed season for several months in major spawning areas to allow fish to repopulate and grow undisturbed, ensuring bountiful supply.  —KBK, GMA Integrated News