Biz Buzz: Steel industry cartel?
Incoming President Rodrigo Duterte has time and again warned officials of the Bureau of Customs (BOC) to stop (“S-T-O-P”) the shenanigans that have made the agency one of the most corrupt agencies of government, including under the outgoing Aquino administration.
It’s either they stop or they get a taste of the Duterte brand of justice.
Biz Buzz was recently made aware that a group of young entrepreneurs wants to bring to the attention of Duterte an instance of what they claim to be a clear case of the BOC taking the side of the Philippine Iron and Steel Institute (Pisi) in “illegally” stopping the release of their shipment of 5,000 metric tons of 12 mm deformed reinforcing steel bars from China.
According to the entrepreneurs behind Mannage Resources Trading Corp., Cutoms deputy commissioner Jessie Dellosa stopped the release of the shipment based on what they believed were “patent falsities” peddled by PISI.
First, Pisi claims the shipment did not have an Import Commodity Clearance (ICC) certificate of conditional release or certificate of exemption. Pisi also said that in the latest publication of the Bureau of Product Standards (BPS) of active logos for rerolled and deformed steel bars, there was no new logos approved for sale or distribution in the local market.
As to PISI’s first claim, Mannage Resources said it was issued a provisional ICC by the DTI Zambales office in April 2016 signed by DTI Director Leonila Baluyut.
As to the second claim, the firm said it had secured a BPS-approved logo design for reinforcing steel bars and rerolled steel bars in 2015.
Mannage Resources is also challenging the warrant of seizure and detention which PISI has asked BOC to issue for the shipment that has been languishing at the Subic Bay port since late April. (Only the BPS or DTI has the authority to issue a seizure order.)
Mannage Resources suspects that a politician may be stopping the release of the steel imports.
Indeed, the world index price for steel is at its lowest in years, yet rebars in the Philippines remain the most expensive in the world.
So is the local steel industry now dominated by a cartel that does not want competition, and wants to keep steel prices artificially high so it can profit at the expense of consumers? Daxim L. Lucas
Logistics deal
INFRASTRUCTURE holding firm Metro Pacific Investments Corp. has sealed its entry into the logistics business with the purchase of a string of logistics assets worth around P2.17 billion. Its unit MetroPac Movers Inc. (MMI) took over the assets and key contracts of Basic Logistics Corp., A1Move Logistics, Inc., Philflash Logistics Inc. and BasicLog Trading and Marketing Enterprises.
“MPIC has concluded that there is merit in expanding into non-regulated infrastructure business,” MPIC said.
The operative word “non-regulated” is interesting. MPIC hasn’t been very lucky with some of its regulated infrastructure businesses (water and tollroads) as far as tariff adjustments are concerned during the term of Pres. Aquino. Incoming Pres. Duterte, however, is said to have indicated a high esteem for MPIC chief Manuel V. Pangilinan.
The sellers will designate a company that will buy 24 percent of the outstanding capital stock of MMI, which will expand using the assets and businesses acquired from the sellers. Doris Dumlao-Abadilla
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