AO 20 could favor undervalued, misdeclared agri goods–sinag

LOCAL producers are concerned by the recent enforcement of Administrative Order 20 (AO 20), apprehensive that the new regulations might pave the way for an influx of undervalued or misdeclared agricultural imports.

Jayson H. Cainglet, the executive director of Samahang Industriya ng Agrikultura (Sinag), said the problem facing the industry lies not with legitimate imports and accredited importers paying the correct tariffs, but with outright smuggled agricultural goods and those that are misdeclared and undervalued.

“The problem of the industry lies in the outright smuggling of agricultural goods and those that are misdeclared and undervalued,” he said.

Cainglet also highlighted the longstanding issue of inadequate border inspection, citing the absence of a 100-percent inspection of all agricultural products as mandated by the Food Safety Act of 2013 (RA 10611) and the Antiagri Smuggling Law (RA 10845).

Sinag’s primary concern is that AO 20 may worsen the problem by potentially opening the floodgates for more undervalued or misdeclared agricultural imports.

“This is happening because we don’t have 100-percent border inspection of all agri products as provided by the Food Safety Act of 2013 [RA 10611] and the Antiagri

Smuggling Law [R A 10845]. We just hope that the new AO 20 will not open the floodgates for more undervalued or mis-declared agri imports,” he said.

The Sinag official also expressed frustration over the unequal treatment between importers and local producers.

While importers benefit from streamlined processes and favorable policies, local producers continue to face stringent requirements in securing business permits, arbitrary closures of farms, and inconsistent regulations across different jurisdictions, Cainglet said.

He emphasized the urgent need for policymakers to prioritize the interests of local producers and ensure that AO 20 does not exacerbate the challenges faced by the domestic agriculture sector.

A four-page Administrative Order No. 20, signed by Executive Secretary Lucas Bersamin on April 18, emphasized that administrative constraints and non-tariff barriers continue to persist, which have caused a continued increase in the domestic prices of agricultural commodities despite existing measures.

Non-tariff barriers are policy measures, other than customs tariffs, that restrict trade, including but not limited to quotas, import licensing systems, regulations, and red tape.