Local industries back tighter law on smuggling

The Federation of Philippine Industries has backed calls for the classification smuggling as a form of “economic sabotage” and the imposition of stiffer penalties on smugglers.

The group issued the statement in reaction to the pronouncements made by the Department of Justice supporting a Senate bill authored by Sen. Grace Poe.

According to FPI chair Jesus Lim Arranza, the said measure seeks the redefinition of smuggling and the imposition of stiffer penalties—including life imprisonment—on smugglers depending on the gravity of the offense.

“It (smuggling) should be rightfully defined as economic sabotage because no less than President Aquino acknowledged in his last year’s Sona (State of the Nation Address) that the government was losing about P200 billion in tax revenue annually due to smuggling,” Arranza said.

“In fact, it affects not only government revenue, but also the local manufacturing industries which are forced not to operate at their full capacities because of unfair competition from smuggled goods. The problem could eventually result in business closures and dislocation of workers,” he said.

Arranza said the closure of companies due to the ill-effects of smuggling would affect the entire supply chain—raw material suppliers, packagers, truckers, indirect laborers and others.

Smuggling has been deemed by both the government and the business community as one of the top constraints that continue to hamper the competitiveness of industries operating in the country.