FPI-BoC partnership gains cited

The Federation of Philippine Industries reported Thursday that its partnership with the Bureau of Customs (BoC) is bearing fruit in terms of initiating a Senate probe on the smuggling of coconut, palm oil and other agricultural products.

The BoC, FPI said, is also closely monitoring imports of steel, rice and cooking oil.

FPI chairman Jesus Lim Arranza, who is also concurrently the chairman of the FPI anti-smuggling committee, said in a statement that industry experts from FPI have been assisting BoC in preventing technical smuggling as well as monitoring imported goods covered by mandatory certification.

Arranza said that recently, BoC also issued a memorandum that provides that all importations of steel and iron products with tariff heading 72-76, petroleum oil products with tariff heading 27.09 and 27.10, rice products with tariff heading 10.06, and cooking oil with tariff heading 15.11 and 15.15, need clearance from the Office of the Commissioner.

Clearance shall only be issued when the goods have been properly examined, appraised and assessed, according to the order.

The issuance signals a clamp-down against these commonly smuggled products, Arranza said.

He noted that while the tariff duties in various products might be zero, what the unscrupulous importers cheat on is the 12 percent value-added tax.

The BoC and FPI formalized their partnership in 2010 with the signing of a memorandum of agreement during the 1st National Anti-Smuggling Summit and the subsequent issuance of Customs Memorandum Order No. 01-2011 entitled “Rules and Regulations to implement the provisions of the memorandum of agreement dated November 19, 2010 between the Bureau of Customs and the Federation of Philippine Industries.”

BoC Commissioner Ruffy Biazon later issued a BoC memorandum dated Oct. 26, 2011, reminding BoC personnel that Customs Memorandum Order 1-2011 remains in full force and effect.