Due to alleged trade obstacles and unfair treatment received by its local affiliate, the Chinese partner of steel trader Mannage Resources Trading Corp. (MRTC) has expressed “grave concern” over the investment environment in the Philippines.
In a letter to Chinese Ambassador to the Philippines Zhao Jianhua, Shanghai-based SIICGM Development (Hong Kong) Ltd. sought the envoy’s help in asking the Philippine government to swiftly resolve all issues preventing the release of MRTC’s steel shipment from China.
MRTC’s shipment of 20,000 metric tons of deformed steel bars—used for infrastructure projects like buildings and roads—are held up inside its warehouse at the Port of Subic on orders of the Department of Trade and Industry (DTI) despite the firm’s compliance with import rules and payment of more than P43 million in taxes, the company said.
“We’re very worried and disappointed about the investment environment in the Philippines,” the letter stated. “SIIC, as the pioneer enterprise of the Chinese government’s ‘Belt and Road’ policy, came to invest in the Philippines to meet the increasing construction material demand.”
“But we encountered obstacles at the very initial stage,” the company added. “We [request] our Ambassador to coordinate with the Philippine government to remove the obstacles for economic and trade exchanges between the two countries and create an equal and mutually beneficial trade environment.”
The firm blamed the Philippine Iron and Steel Institute (PISI) which, it said, was responsible for misleading the DTI and the Bureau of Customs, for spreading false rumors about the quality of their steel and for causing the baseless recall of a final Import Commodity Clearance (ICC) issued by DTI to MRTC.
It added that PISI was engaged in various schemes to prevent MRTC from supplying high quality steel to the Philippine market at reasonable prices by hampering their customs and port clearances. Delayed delivery of steel bars already paid for by customers have led to project delays and irreparable losses to MRTC, SIICGM said.
Last week, MRTC president Lawrence Sy officially sought the help of President Duterte and Trade Secretary Ramon Lopez. He sought a thorough investigation of concerned government officials and agencies responsible for holding the steel shipment.
“We have full confidence in President Duterte’s leadership and his vow to rid government of corruption and red tape,” Sy said. “We hope this issue would be resolved soon so we can continue to do business, pay taxes and help build the country.”
He said MRTC’s steel products underwent thorough inspection and reinspection by DTI Region 3 officials. The agency even issued a final inspection report stating that everything was in order. However, DTI officials recalled the final ICC and blocked release of MRTC’s steel shipment.
On Jan. 3, 2017, MRTC filed a graft and anti-red tape complaint before the Office of the Ombudsman against DTI Region 3 director Judith Angeles and DTI-Bureau of Product Standards assistant director Marimiel D. Porciuncula. The two were accused of discriminatory conduct for the baseless recall of a final ICC just nine days after it was issued by the same agency.