Private sector to grill govt officials on smuggling

To stop the illegal entry of goods into the country, the private sector will grill government officials in the country’s first summit on anti-smuggling. “Once and for all, the government and private sector will meet and come up with a holistic approach to stop smuggling. There will be no finger-pointing," Jesus L. Arranza, Federation of Philippine Industries chairman and concurrent head of the FPI anti-smuggling committee chair, said in a statement Monday. Industry and labor sector representatives will lay down their concerns and proposals, and government officials are expected to respond, Arranza said. “It will be more of knowing the problem and finding out the solutions," Arranza added. He cited data from the International Monetary Fund showing that exports to the Philippines from 2002 to 2007 amounted to $284.7 billion while the Bureau of Customs recorded only $195.01 billion — a difference of $89.69 billion — in the same period “This means an annual average disparity of $14.59 billion," he said. Arranza explained that “taking into account the 12-percent value-added tax and an average duty of 5 percent, [these] translate to an annual revenue loss, [against] the government, of P127 billion." According to the federation, smuggling has a very negative impact on farmers, workers, and businesses as it robs government of money for social services. It also envisions the summit as a forum so that the public will know that smuggling discourages direct foreign investment, reduces employment opportunities and to an extent cuts the chances of legitimate companies from competing fair and square in the domestic market. As a result labor is dislocated, the federation said. “Smuggling flourishes because people buy smuggled foreign goods, which are cheap only because the correct duties and tariffs are not paid upon their entry," Arranza said. “Not to mention that most [smuggled goods] are substandard, he added. Among those expected to attend the Nov. 19 summit at the Intercontinental Hotel are President Aquino, Senate President Juan Ponce Enrile, Finance Secretary Cesar Purisima, Bureau of Internal Revenue Commissioner Kim Henares, Customs Commissioner Angelito Alvarez, Rep. Erin Tañada, Sen. Franklin Drilon, officials and members of the federation, the Philippine Employer-Labor Social Partnership Inc., and the Federation of Filipino-Chinese Chamber of Commerce and Industry Inc. “The objective is at the end of the day we will come up with ways and means, the things to implement, particularly those that are doable just by the issuance of administrative orders and executive orders, and those requiring amendments or enactment of new laws," he added. The 1st National Anti-Smuggling Summit will run on the theme: Strengthen Industry & Agriculture, Save and Create Jobs, Eradicate Smuggling! Arranza said the summit is a response to the call of President Aquino to fight smuggling and protect government revenues. — VS, GMANews.TV