Amending Customs law seen to stop farm goods smuggling

Amember of the House of representatives believes prioritizing amendments to the Customs modernization and Tariffication Act (CMTA) would stanch the bleeding in revenues due to smuggling of farm goods.

AAMBIS-OWA Party-list Rep. Sharon S. Garin renewed her call for the immediate passage of a bill amending the CMTA as she is alarmed with the “staggering discrepancies” between declared importations of trade partners and the records held by the Bureau of Customs (BOC).

During the recent continuation of the motu proprio investigation on the rampant smuggling of agricultural products, Garin said lawmakers concurred on the necessity to review and streamline the procedure of importation of farm goods through enhanced coordination with the BOC.

Agriculture Secretary William D. Dar earlier told lawmakers that the Philippines has long been vulnerable to smuggling with its archipelagic design.

Dar said the 17 designated ports of entry and 39 sub-ports as well as porous borders in the south have made it more challenging to totally seal off the country from smuggling.

Describing it as a form of economic sabotage, Dar said of fruits, vegetables or meat products might be seen as minor offenses but “are actually worse than economic plunder.”

“[It] silently sucks out the life of agriculture and our farmers. The perennial problem of smuggling has caused the economy billions of revenues and dramatically impacts the livelihood of local farmers and fishermen,” Dar told the Lower Chamber.

Garin, principal author of House Bill (HB) 5548 that seeks to amend CMTA (Republic Act 10863), said amendments are necessary to further improve the country’s international standing. International trade facilitation is crucial to the country’s economic growth, Garin added.

The vice-chairman of the House Committee on Ways and Means noted that the country’s institutional arrangement and cooperation rating plateaued at 55.56 percent from 2017 to 2019. Should the bill be passed into law, the country’s rating is expected to progress, Garin said.

HB 5548 is in line with the administration’s continuing efforts to boost the country’s trade activity and adopt global practices, the lawmaker said.

Garin hopes to improve the country’s ranking in the Top-25 developing economy exporters, where The Philippines ranks 15th in the 2018 World Investment Report.

She said HB 5548 seeks to amend the provisions, among others, affecting the customs clearance, off-dock customs facilities warehouse and that of other third parties as defined in the CMTA.

“Provisions proposing the simplification and clear definition of some processes in the customs clearance of imported goods are incorporated in the bill,” Garin said.

The bill seeks to simplify and “clearly define some processes in the customs clearance of imported goods.”

The measure also seeks to give the BOC more power in imposing administrative sanctions insofar as third parties are concerned.

The bill is pending with the Committee on Ways and Means since November 2019.