The Federation of Philippine Industries (FPI) said an estimated 800 40-foot container vans of plywood from China reportedly entered the country since May 2011.
“These imported plywood have not paid the correct taxes and duties because it is either misdeclared or smuggled into the country,” the FPI said.
With the surge of the unmarked imported plywood from China, the local manufacturers partnered with government authorities in intensifying their drive to check hardware and lumber outlets in the National Capital Region, Cavite, Batangas and Laguna.
FPI said plywood is covered by mandatory standards. This means that locally manufactured plywood should be marked with a PS label, while imported plywood is required to obtain the corresponding Import Commodity Clearance (ICC) from the Department of Trade and Industry.
FPI said verification done by the industry revealed that most imported plywood have not complied with the ICC requirements.
“The imported plywood [sheets], which are 5-ply and of 4.5-millimeter [mm] thickness, are being passed upon and sold as plywood with a 5-mm thickness. They have external veneers that are unacceptably thin, usually no thicker than 0.25 mm,” the group said.
Also, FPI said the plywood panels are not sanded and are rough, because they cannot bear sanding in view of their thin veneers.
The glue used in the imported plywood has high formaldehyde emission that is hazardous to the health of the consumers and builders as well as construction workers, the group said.
“Worse, these smuggled and unmarked imported plywood [sheets], aside from depriving the government with the needed revenues in terms of unpaid duties and 12-percent VAT [value-added tax], are also unfairly competing and undercutting the prices of local plywood manufacturers. Industry members gravely disclosed that an estimated 16 local workers will be losing their jobs per smuggled container van,” FPI said.
