How the BOC can win the war on smuggling
An antismuggling structure that has proven successful (it decreased smuggling rate by 25 percent and 32 percent during the times—twice, to be exact—it was operational) must be reestablished immediately. With the planned ratification of the Regional Comprehensive Economic Partnership (RCEP), which will allow more subsidized agriculture products to enter our shores, we must protect our agriculture from unfair trade.
Smuggling, in particular, will further decrease the already low incomes of farmers and increase rural poverty level, currently at 31 percent. This number is already double that of neighboring Asian countries.
On Feb. 11, the committee on international trade of the legislated public-private sector Philippine Council for Agriculture and Fisheries had as main agenda in its meeting the antismuggling efforts of the Bureau of Customs (BOC).
Bigger picture
There were commendable antismuggling achievements identified. But the question raised was: How relevant are these vis-à-vis the bigger picture?
For example, a report showed that P50 million worth of smuggled rice had been apprehended. Now, compare this to BOC records showing that from March 29 to October 2021, foregone tariffs from smuggling have already reached P8.85 billion. It’s all about context. The magnitude of rice smuggling was not even discussed thoroughly.
With the RCEP nearing ratification, more imports mean there is also the likelihood of smuggling getting worse.
It is now necessary to take the necessary steps to prepare for the RCEP.
The Department of Agriculture (DA) earlier told the Senate that they do not see threats from the RCEP, thus no preparatory activities were needed. This was countered by a strong statement from 104 organizations, which asked for thorough preparation before the country embarks on the trade deal.
One critical action they suggested was to strengthen our antismuggling measures.
The agriculture antismuggling committee today consists of a DA assistant secretary, who heads the DA component with four DA agencies. There is no private sector representative. The BOC side, meanwhile, is headed by a deputy commissioner. Therefore, there is no one at the DA with a rank higher than the deputy commissioner to ask for transparency and accountability.
During that Feb. 11 meeting, it was suggested that a structure be reestablished with officials higher than the BOC commissioner to perform oversight and supportive functions during regular monthly meetings. This structure succeeded. It reduced the smuggling rate by 25 percent the first time, and by 31 percent the second time. Many concluded this structure was abolished twice because it was proven too successful in fighting smuggling (i.e. the “big fish” were caught) and thus consequently had to be terminated.
Support needed
That proposed structure was explained in a Senate hearing, which was prompted by a privilege speech from Senate President Vicente “Tito” Sotto III. There, it was communicated that the BOC should not be alone in fighting smuggling, that it should get the support of other departments and the private sector.
The first structure was called the Cabinet Oversight Committee on Anti-Smuggling (Cocas). Its chair was from the Office of the President, with undersecretaries from the departments of agriculture, trade and industry, finance and justice. They met with the BOC commissioner every month, reviewed and supported BOC activities, and received a full accounting of antismuggling initiatives. Helping them were two representatives from the private sector: Alyansa Agrikultura for agriculture and the Federation of Philippine Industries for industry.
Since the private sector knows some aspects of smuggling even more than the government, their inputs were welcomed by the BOC chief. He even said that their support was effective in countering pressure from powerful individuals and smuggling syndicates.
Unfortunately, after successfully decreasing the smuggling rate by 25 percent, the Cocas was abolished.
After this, the BOC was left alone with little guidance and no oversight group. Consequently, smuggling increased significantly.
The second structure was the antismuggling committee of the National Competitiveness Council that reported directly to the President. It operated similar to Cocas. Unfortunately, after posting a 31-percent decrease in the smuggling rate, it was also abolished.
The BOC today does not interact with any committee composed of high ranking officials from different departments and the private sector.
We must now reestablish a similar structure, especially with the threats the country is facing from ratifying the RCEP.
The author is Agriwatch chair, former secretary of presidential programs and projects and former undersecretary of the DA and the Department of Trade and Industry. Contact him at [email protected].
