Biz Buzz: Smuggling with ease

Although the matter does not directly fall under their jurisdiction, some people at the Bureau of Customs have raised concerns over a recent issuance of the Department of Trade and Industry. They are referring to Memorandum Order 15-752 issued April this year.

The MO deals with Import Commodity Clearances (ICCs) and Show-Cause Orders (SCOs) for violations of Department Administrative Order No. 5 involving the inspection, inventory, sampling and testing of imported products. It was actually directed to the Bureau of Philippine Standards (BPS).

While the MO was issued purportedly for the benefit of importers, traders, brokers, indentors and manufacturers to “ensure ease of doing business” in the processing of clearances, it seems to take a swipe at BOC for alleged “delays in the release of their shipments, costing the importers millions of pesos in demurrage.” BOC people say that the MO implies that they are inefficient in doing their job.

We can understand the concern of the Customs people especially since, among malicious minds, there could be inference that the delays are being done deliberately and that there is some hanky-panky involved.

There is also talk that the MO has generated confusion, and even ridicule, in some quarters with regard to the show-cause orders that are issued to importers who transfer their shipments from the warehouse without prior notice to the BPS and before their products are subjected to inspection.

And it appears that the ridicule and confusion generated in regard to the show-cause orders are not without reason.

Get this: For the transfer of warehouse without prior notice to the BPS (and if inspection shows that the shipment is incomplete because part of it has been taken out by the importer), the MO says that for the first offense, the erring importer will simply be given a reminder letter and the case will be considered closed.

For the second violation, the importer will suffer what is supposedly a heavier consequence, which again, is simply a stern warning. It is only in the third offense where the erring importer loses his surety bond as it will be forfeited for withdrawing part of the shipment that could be worth tens or hundreds of millions of pesos.

But guess how much the surety bond is—just P150,000. So, if you are one wily importer, of course you will be tempted to take out as much of the shipment as you want. Anyway, all you get is a reminder letter for the first offense, a stern warning for the second offense and the loss of a petty sum for the third offense.

And there’s more to ridicule. Again in reference to the show-cause orders, the MO also provides that even if part of the shipment had been spirited away without prior notice to the BPS and before the goods are inspected, inventoried and tested—but the subsequent inspection, inventory, sampling and testing conducted by the BPS and if the test shows that the products or goods remaining in the warehouse show compliance with the standards—no penalty shall be applied.

So why issue a show-cause order at all?

It would seem that this MO actually helps smugglers conduct their nefarious activities with greater ease. And that’s where the ridicule begins. It’s easy to trace where all of this started—at some official’s desk at the DTI. Daxim L. Lucas

Show biz calling

INVESTMENT banker Roberto Juanchito “Jojo” Dispo, president of First Metro Investment Corp., has an inner show biz calling outside of his deal-making job. It’s part of his “bucket list” to write a book or a screenplay for a movie and actually produce a film.

So, like a few other business leaders who had dabbled into movie production in recent years, Dispo is investing P15 million out of his own pocket to produce a movie—one that’s socially oriented and calls attention to the plight of overseas Filipino workers (OFWs), some of whom end up with abusive employers. And Dispo himself will author the story, one which will focus on a prominent family led by a rich patriarch who will have one son who will rise to become senator and another son, who is paraplegic.

The script is about to be finalized in two weeks along with the casting of actors and actresses. Dispo’s dream cast is for the patriarch character to be played by Eddie Garcia, the senator/character by Edu Manzano and the paraplegic son to be played by Aga Mulach.

Dispo has teamed up with Viva Films to create this dream movie, which sounds like a potential tear-jerker but with a mystery-thriller component.

All proceeds from the production the investment banker intends to donate to organizations involved in the OFWs’ welfare. Doris Dumlao-Abadilla

Praise for new ERC chair

SOME power industry players were worried for a while when President Aquino took his time in choosing the next head of the Energy Regulatory Commission (ERC), but it looks like most stakeholders are happy with his decision.

In fact, some of the biggest players in the power generation sector have welcomed the appointment of former justice undersecretary Jose Vicente Salazar as the new chair of the ERC.

According to Anne Estorco Macias—managing director of the Philippine Independent Power Producers Association (Pippa), which is the country’s biggest professional organization of power producers—Salazar’s appointment was expected to stabilize the country’s energy policies for the benefit of consumers and investors.

“Being a lawyer and an electrical engineer is a rare combination that would help him well in understanding and navigating complex energy issues,” she said. “His stint at the Department of Justice and post-graduate studies at Harvard University are equally impressive.”

Salazar will serve a full seven-year term until 2022, which will help assure continuity and smooth flow of policies and programs—something sorely lacking in the power industry right now.

As justice undersecretary, Salazar handled energy matters that required the DOJ’s attention. He was chair of the DOE-DOJ Task Force on the Downstream Oil Industry Deregulation Act of 1998. He was also part of the board of Power Sector Assets and Liabilities Management (PSALM) Corp. This background means he is not new to the ins and outs as well as intrigues and power plays in the industry.

And unlike some candidates for the ERC chairmanship that were floated just a few weeks ago, the local power industry and players like Pippa are breathing a sigh of relief at Salazar’s appointment. Daxim L. Lucas

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