Globalization or nationalism

To be an effective nationalist, one should be globally oriented. “Think global, act local” is the right way to go. But some take globalization too far in an attempt to look global, often at the expense of the nation.

This is what may be happening today in the House of Representatives.

The Anti-smuggling Bill (ASB), which was passed by the 13th and 14th Congress, is in danger of being killed in favor of the proposed Customs Tariff Modernization Act (CTMA). Many believe that this is because the CTMA incorporates provisions from the Revised Kyoto Convention (RKC), which is a global document that facilitates importation. However, without the preparatory timeframe of 3 to 5 years which the RKC itself allows, the CTMA may result in even more smuggling. This is the exact opposite of the ASB’s objective.

CTMA and WTO

The proposed CTMA without the allowed preparatory timeframe reminds many farmers and fisherfolk of the betrayal they felt when the Philippines joined the World Trade Organization (WTO) in 1995. At that time, they withdrew their opposition to the rapid trade liberalization of the WTO when they were promised safeguards and competitive enhancement mechanisms (e.g., credit, technology transfer, marketing assistance, etc.), which would enable them to compete globally. These promises were not fulfilled. The result was a massive loss of already low incomes.

Now comes the CTMA.

The Alyansa was assured by the Senate that there would be a 3- to 5-year timeframe before full implementation of the RKC provisions. But in the proposed CTMA, this timeframe was abolished. Thus, the CTMA will provide more opportunities for smuggling.

RKC provisions

After 10 years, the RKC has been acceded to by only 72 out of the 176 country members of the World Customs Organization (WCO). The other members are wary of the RKC provisions that might be used as smuggling loopholes.

It is estimated that the government loses P100 billion a year due to smuggling.

Considering this, our RKC accession is a risky step toward globalization. The saving grace is the timeframe before full RKC implementation. Without this timeframe, we will be guilty of reckless globalization at the expense of nationalism.

Below are two proposed CTMA provisions similar to the RKC provisions, but without the RKC-allowed timeframe:

“Customs shall for valid reasons permit the declarant to amend the goods declaration that has already been lodged, provided that when the request is received, they have not begun to check the goods declaration or to examine the goods.”

With our current defective BoC control system which has resulted in rampant smuggling, the above CTMA provision can be a loophole for smugglers to amend their “goods declaration” and actually legalize their smuggling.

“Duties, taxes and other charges should be paid prior to release…. However, for certain highly compliant and low-risk importers… the Bureau shall allow the deferred payment of duties and taxes for a period not less than 14 days, but not exceeding 30 days.”

We believe that all payments should be made prior to release with no exceptions. Until we correct the BoC defective control system (which we can do if we are allowed the timeframe), this is yet another legal loophole smugglers can use. There are many other provisions in the CTMA/RKC if the timeframe is abolished.

Recommendation

We should advocate both globalization and nationalism. We recommend approving the global and nationalist-oriented ASB immediately to protect our citizens from smuggling. The CTMA with its RKC provisions can follow, provided that the preparatory timeframe for RKC provision implementation is retained.

Trying to appear more global than even the RKC itself by eliminating the RKC-sanctioned timeframe is not only a sign of a misplaced colonial mentality, but another betrayal that the farmers and fisherfolk smuggling victims can no longer tolerate.

(The author is chairman of Agriwatch, former secretary for presidential flagship programs and projects, and former undersecretary for Agriculture, and Trade and Industry. For inquiries and suggestions, e-mail [email protected] or telefax (02) 8522112.)