August 29, 2011

Philippine meat importers dismiss alleged pork smuggling

The Meat Importers and Traders Association (Mita) in the Philippines deny massive pork smuggling, saying pork offals are already priced below US$1 per kilogram and are slapped an average tariff of below 10%.

For this reason, Mita president Jesus Cham said that allegation of smuggling is simply impossible.

Cham reacted to statements made by Agricultural Sector Alliance of the Philippines (Agap) party-list Representative Nicanor Briones to ask the Department of Agriculture to look into the PHP2.7 billion (US$64.16 million) worth of taxes which the government is purportedly losing due to "the rampant misdeclaration and smuggling or imported pork meat" into the country.

Briones also pointed out that at least 81 million kilograms or pork have been imported this year and that the imported pork managed to be shipped into the Philippines through "misdeclaration" of fats, rind or offal.

Cham said Briones' claims are "nothing new" and that these issues have always been raised whenever there is a change in leadership at DA.

Mita noted that current regulations require all meat importations to undergo X-ray and examination by the Bureau of Customs (BoC), inspection of the container and subsequent resealing by the BAI quarantine officer at the port of entry and transfer to the National Meat Inspection System (NMIS) registered cold store where an NMIS inspector breaks the seal and conducts a 100-percent inspection of the contents.

"[The congressman also] insinuates that importers may have bribed the BAI in order to secure 'import permits.' He conveniently forgets that any company duly accredited with the DA may apply for the veterinary quarantine clearance and that the BAI is mandated to process and issue such VQC," said Cham also disputed Briones' accusations of bribing the authorities particularly the Bureau of Animal Industry, saying the congressmen forgets that any company duly accredited with the DA may apply for the veterinary quarantine clearance (VQC) and that BAI is mandated to process and issue VQC.

Cham even challenged Briones to present evidence and that the congressmen should not go about besmirching and aligning meat importers and other authorities unless he has proof.

Instead of "insinuations and innuendoes," Cham challenged Briones to sponsor a bill for the Philippines to withdraw from the World Trade Organization (WTO).

Under the WTO of which the Philippines is a member, any duly accredited local importer may bring in any volume of imported farm products for as long as they pay the necessary tariffs and other taxes.

Importers may bring in imported pork at preferential tariff rates under the minimum access volume (MAV) scheme. Pork imported within MAV are slapped a tariff of 30 percent while those outside of MAV are slapped a duty of 40 percent.