Monday, September 21, 2015

Here We Go Again : Sugar Smuggling On The Rise

Posted On Monday, September 21, 2015 by Tech Support • .

Over the weekend, I saw a news item about sugar smuggling. Once again, we are here in this merry-go round. It has always been this way, spinning perpetually but hardly merry at all. Fact is, the Sugar Alliance of the Philippines (SAP) is “very alarmed” of the dramatic increase in sugar smuggling during past few months. SAP is the biggest group of sugar planters and millers in the country. Mr. Manuel Lamata disclosed that this increase in the smuggling of sugar will be very detrimental to the local sugar industry. This will not only affect the sugar planters and millers but also those whose livelihood are also dependent on the local sugar industry. Aside from industry effects, the local consumer will be negatively affected.

While some readers may easily disregard this post because they are neither Negrense nor involved with sugar, people just have to keep this going on social media for the rest of the country to understand. Sugar is not just an "haciendero thing". It is every Filipino's thing.

How it affects the country

Imported sugar is cheaper. The reason behind this is that the sugar industry in China and Thailand are highly subsidized by those respective governments, thus, the price does not really reflect its market value and is the reason why it is competitive with regards to Philippine sugar. This affects the demand for locally produced sugar since imported sugar is Php1,100.00 per sack while local sugar is priced at Php2,350.00 per sack.

The detrimental effects to the consumer can be attributed to the fact that imported sugar does not undergo any quality control tests unlike locally produced sugar, thus, the health and safety concerns of the consumer are compromised.

Also, the uncollected tariffs and import duties constitute a loss for government revenue that is needed for basic services to the people.

Increased Smuggling in recent months

In January this year, the Bureau of Customs have seized 189 40 foot containers of smuggled sugar worth Php240,000,000.00 at the Manila International Container Terminal, Cebu port and Cagayan de Oro port. In May another 10 40 foot containers from China were apprehended worth 13 million pesos. Last August 13, 2015 , the Customs Bureau was able to take 21 40 foot containers of smuggled sugar. The Customs Intelligence Group also netted Php57,000,000.00 of smuggled sugar.

These developments are “very alarming” indeed as lamented by the SAP. The sheer cost and volume of the smuggling activities indicates an increase that is unprecedented.

Pleas for Intervention

The SAP represented by Mr. Lamata has already conveyed the concerns of the sugar industry through a letter to President Benigno Aquino III citing the increase of sugar smuggling these past few months. Also, the issue has already been brought to the attention of former DILG Secretary and now presidential standard bearer Mar Roxas at the Philippine Sugar Technology Convention held recently in Cebu.

Recent Smuggling

In its banner headline on September 20, 2015, the Philippine Daily Inquirer cited the attempt to smuggle sugar by a known close associate of President Aquino. Virginia Torres, former Land Transportation Office attempted to intercede for the release of 64 40 foot containers of sugar imported from Thailand. Said importation is worth Php 100 million and was misdeclared as General Merchandise. The importation did not have the necessary requirements from the Sugar Regulatory Administration. Notwithstanding, the request for the release of the sized containers were not given accommodation by the Bureau of Customs.

Impressions

It is no secret that smuggling continues to be a problem in this country. The government must do its best to enhance its revenue collections so that there will be more funds available for basic services. Also, it must enforce the law no matter who tries to intercede and intervene in smuggling cases. But it is paramount that it also protects the Filipino consumer and Filipino industries as well.