DA probes technical smuggling report

The Department of Agriculture (DA) is currently investigating an alleged case of technical smuggling that involved at least 500,000 tons of corn, and has placed one of its own agencies under probe.

Agriculture Secretary Proceso J. Alcala said in an interview that the DA was verifying information provided by the Philippine Maize Federation Inc. (PhilMaize), which is composed of corn farmers, millers and livestock growers who use the grain as animal feed.

According to PhilMaize, the shipments come from Argentina and Brazil. However, these were declared as coming from Vietnam and Thailand to take advantage of lower tariffs enjoyed by members of the Association of Southeast Asian Nations (Asean).

In separate letters addressed to Alcala, Customs Commissioner John Phillip P. Sevilla and Trade Undersecretary Adrian S. Cristobal Jr., 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 the goods were supposedly coming from within Southeast Asia, they were slapped duty of only 5 percent.

“We are in the middle of investigating this matter,” Alcala said. “We are verifying the information related to [the importers] and even the Bureau of Plant Industry, since it is the BPI that issues documents that are included in the requirements for importation.”

The agriculture chief said the DA would come out with the investigation’s findings “soon.”

In a separate interview, Navarro said the government might have lost some P2.1 billion in revenue because of the misdeclaration of the shipments’ country of origin.

“We get our information from both domestic and international sources,” Navarro said. “PhilMaize is active in international organizations and we get to share information with our counterparts from abroad.”

Navarro said region’s efforts to establish a single market through what is called the Asean Economic Community, which involved substantial reduction of trade barriers within the region, had provided venues for unscrupulous parties to engage in the illicit movement of goods.

“PhilMaize is convinced that this transaction has been going on for some time, whenever the opportunity presents itself,” he said.”

“PhilMaize sent our letters to different government agencies, even to the Department of Justice and the National Bureau of Investigation, because we want the authorities themselves to address this matter,” Navarro added.