Farmers report corn smuggling

An umbrella group of corn farmers and traders is appealing on authorities to stop what it describes as technical smuggling of at least 500,000 tons of corn from Argentina and Brazil.

According to the Philippine Maize Federation Inc., the shipments were made to appear as coming mostly from Vietnam and Thailand to take advantage of lower tariffs enjoyed by members of the Association of Southeast Asian Nations (Asean).

In a letter to Agriculture Secretary Proceso J. Alcala dated July 23, PhilMaize president Roger V. Navarro said the importers would have paid duties equivalent to 50 percent of the shipments’ value if the actual origin was declared.

But because Vietnam and Thailand were declared the countries of origin, the importers paid only 5 percent in duties.

“We strongly denounce this selfish act of technical smuggling at the expense of the Afta [Asean Free Trade Agreement] and the lives of Filipino corn farmers,” Navarro said.

He noted that 500,000 tons of the questioned corn shipments came from Vietnam, which he said imported corn to meet local demand and where the cultivation of genetically modified corn was not allowed.

PhilMaize asked Alcala to order the Bureau of Plant Industry, which was under the supervision of the DA, to test the corn shipments.

The group said that if results would show that the grains were genetically modified, then they were not harvested in Vietnam.

In similar letters sent to Customs Commissioner John Phillip P. Sevilla and Trade Undersecretary Adrian S. Cristobal Jr., both dated Sept. 12, Navarro said shipments were imported by “Agri Multicom Trading and CDO Corn and supplied by Vina Commodities of Vietnam.

“It is very clear in this transaction that exporter Vina Commodities was issued by the government of Vietnam the certificate of origin, (the only purpose of which) is to help the Philippine importers evade payment of the correct tariff,” Navarro said.

“They had clearly violated the rules of origin,” he added. “We should uphold the credibility of our agreements in Asean and to put in place the needed safeguard measures.”

Further, Navarro said the Philippines should “compel Vietnam and Thailand to restitute this matter.”

PhilMaize sent follow-letters to both Sevilla and Cristobal last Sept. 23, saying that as of that date, the same parties are arranging the shipment from Vietnam of 5,000 tons of Argentinian corn.

In August, the Department of Agriculture said the Philippines was expected to start producing corn in excess of domestic demand by 2015 as harvest area and growth of yield per hectare to continue to expand.

Data from the Philippine Statistics Authority show that national output of corn is on pace to grow by 3 percent this year to reach 7.6 million tons from about 7.4 million tons in 2013.