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    P130M lost in waived lab fees on exports
     
    By Manuel T. Cayon   
    Reporter

    DAVAO CITY—With the government already losing more than P130 million for waiving laboratory fees for the tests it conducts on agricultural exports in only four months, agricultural exporters are now being urged to adapt self-regulatory measures to ensure their chances of meeting the quarantine standards of importing countries.

    Joel Rudinas, officer in charge director of the Bureau of Plant Industry (BPI), said the government has lost P33 million in testing fees and more than P100 million in inspection fees after it agreed to waive, beginning March this year, some of the mandatory fees on exports to help cushion the impact on exporters of the steadily appreciating peso.

    But in so doing, the government is now concerned that the exporters would slacken on meeting phytosanitary standards “just because exporters don’t have to subject their products anymore to government testing before shipment.”

    The removal of the testing fee and the reduction of a fee on laboratory inspection of sample exports was contained in Executive Order 554, issued in November last year and implemented in March 2007.

    The waived fees were part of the government move to ensure that exported agricultural products met at least the minimum quarantine standard of importing countries, although countries like Australia and Japan, the US and the European Union have come up with strict standards.

    The tests determine the presence of pests and diseases, and the presence or residue of pesticides laced in fruit. “Countries are getting stricter with pesticides and other chemical input because the world is getting to be particular with organic farm products,” he said. Organic practice involves the nonuse of chemicals, from fertilizers to pesticides.

    Rudinas said the executive order has directed state testing agencies “to remove” these fees and the fees would not likely be reimposed once the currency settles down and the profitability of exports is no longer threatened with declining receipts.

    “The intention to remove the fees was laudable but we are not sure if it was the right medicine,” he told BusinessMirror at the sidelines of the 6th Mindanao Fruit Congress late last week held at the Royal Mandaya Hotel here.

    He said the testing fee was totally scrapped and he estimated the government lost P33 million from March to July. The inspection of samples of exported fruits that would cost exporters P5,200 per sample, was reduced to P2,500 on the agreement that the slashed amount was the cost of testing while the remaining amount would cover for the purchase of reagents and other chemicals.

    “That means that we are practically unable now to do our mandate of covering all exports for testing for pests and diseases. I hope that with that mandate seemingly removed from us, the agriculture industry would now take it upon themselves to maintain the phytosanitary
    standard of their products,” he said.

    “They have to do that, otherwise their products would only get rejected and that would be to their disadvantage,” Rudinas said.

    He is confident, however, that the industry was on the path toward consciously adopting good agriculture practice. “We have received a swarm of requests on how to conduct good farm practice since last year.” He added that the exporters were already apprised of this self-regulation in the government dialogue with their respective industry groups and associations.

    “Let’s take this [self-regulation] to another step, that it would be the industries themselves that would aspire for global standards, and not depend on the government. That’s the best that can happen in this move,” he said.

    Meanwhile, Rudinas told an open forum in the food congress, where Agriculture Secretary Arthur Yap spoke at the closing rites, that China has agreed to let Filipino exporters continue to apply only extended hot water treatment to Philippine mangoes exported to mainland China.

    Other countries have required the vapor heat treatment, but China allowed the hot water treatment, allowing the fruit to be sold cheaper in China’s domestic market. The hot water treatment involves heating water to 48° Celsius and placing the green mangoes in this water for 15 minutes.

    Rudinas said China allowed exporters to immerse the mango for an extended time to kill the common fruit flies that attach to the fruit, and to remove some more traces of pesticides lacing the fruit.

    It was agreed that Chinese experts would accredit the hot-water treatment facilities. Four were approved in Metro Manila. China conceded later that it would allow Filipino experts to do the accreditation. The rest of the country, such as Davao, have their own vapor heat treatment and would not be a problem, he said.

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