May 22, 2012

 

Philippines' meat importers reprobate Customs Chief

 

 

A day after meeting the group's leaders and assuring them the recommended prices were still subject to discussion, the Philippine Customs Commissioner Ruffy B. Biazon has been criticised by the Alliance of Food Processors, Providers, and Stakeholders (AFPPS) for implementing the higher reference prices for imported meat.

 

AFPPS also demanded that the new reference prices be frozen "in the public interest and food security," explaining that the unilateral increases in the prices of dutiable imported meat "would precipitate spiralling of food prices to unaffordable levels."

 

The group described Biazon's move based on the prices recommended by Agriculture Secretary Proceso J. Alcala "ill-timed and unreasonable."

 

With higher reference values, all the member-associations of AFPPS would be assessed higher duties on their meat imports, thus pushing their direct costs of production at more than PHP8 (US$0.19) per kilogramme, and even PHP12 (US$0.28) per kilogramme for processed meat.

 

The AFPPS stressed that it sought a meeting with Biazon upon receipt of his memorandum of April 30, 2012 entitled "Adjustment/Correction of Bureau of Customs (BoC) Reference Rates on Imported Poultry and Pork Meat."

 

In the letter, dated May 9, AFPPS told Biazon: "We find it truly disheartening that your office, on May 4th, had actually implemented the new reference values that were discussed during our May 3rd conference which you then informed us was still under study and that this matter would still be subject to consultation."

 

The group said that in seeking a stay in the implementation of the new reference values, it asked Biazon for time to submit a position paper on the matter. AFPPS explained that it was not aware that Alcala had recommended on April 27 the new reference prices that would be used by Customs in calculating the duties to be assessed on imported meat.

 

Under the current system, offal is assessed only 5% duty while other meat cuts are slapped 40% duty. AFPPS explained that it did not have anything to do with the April 27 recommendation of Alcala, and that none of its members were ever consulted before the DA issued the recommendation and transmitted it to Customs for immediate implementation.

 

The group has also challenged hog growers to prove that AFPPS members are engaged in smuggling and explained that meat processors are resorting to importing pork products since the local livestock industry could not supply the offal they need.

 

On an annual basis, the Philippine Association of Meat Processors, Inc. (PAMPI) said, the processing industry requires 600 million kilogrammes of pork parts. PAMPI Executive Director Franciso J. Buencamino stressed that in spite of their continuing attacks, hog growers supply between 20-30% of the industry's requirements.

 

Hog growers sell live, Buencamino stressed, and they are not inclined to supply the pork parts required by the meat processing industry. These parts have to be sourced overseas, he said.

 

Meat processors have also been sourcing mechanically deboned meat (MDM) for extenders and this has led to the reduction in the importation of buffalo meat, which used to supply 40% of industry requirements. MDM products, mainly chicken, are cheaper than local pork.

 

Accredited pork and chicken exporters supply what the processing industry needs, AFPPS, and local hog growers and poultry raisers cannot supply the demand for special pork cuts and chicken leg quarters.

 

If the local industry can supply all these special cuts, there will never be any need to import them. AFPPS also challenged the hog growers to name names and charge in court whoever is engaged in outright smuggling and technical smuggling.

 

It said that legitimate importers belonging to AFPPS are not engaged in these nefarious activities, arguing that it has shut the door to any company that resorts to smuggling.