THE government is losing an estimated P224 billion a year in revenues, owing to smuggling.  This could be addressed, according to the Fair Trade Alliance (FairTrade), by enacting a law that not only will stamp out smuggling, but will save domestic industries being injured by cheap and untaxed imports.

FairTrade executive director Mars Mendoza was referring to the Anti-smuggling bill, or House Bill 1694, otherwise known as the Tarriffs and Customs Code of the Philippines, introduced by Rep. Lorenzo R. Tañada III and Nicanor M. Briones.

Also known as “An Act Further Strengthening the Anti-Smuggling Mechanism, Amending for the Purpose Certain Provisions of Presidential Decree 1464,” the proposed measure is expected to strengthen the government’s antismuggling campaign.

“An effective antismuggling campaign requires bolder and more sustained reform and action measures from the Executive and Legislative branches,” Mendoza said.
         

FairTrade’s grim data show that the government is losing an estimated P224 billion a year in revenues. “Forgone revenues due to rampant smuggling are short-changing every Filipino of the services he or she rightly deserves from the government,” Mendoza added. 

In a position paper submitted to the House of Representatives Committee on Ways and Means, FairTrade recommended that an industry association file charges as an injured party against smugglers/violators of tariffs and customs laws, and that lawyers or deputized officers of concerned agencies, corporations and associations be allowed to participate in the proceedings in collaboration with or under the supervision of the Bureau of Customs (BOC).

FairTrade also supports the recommendation of the Tariff Commission that a provision on various fraudulent practices against customs revenues include the act of making, declaring a false classification as to the commodity’s correct tariff heading as detailed in the import entry.

FairTrade’s other proposals in stamping out smuggling include the face-lift of revenue-generating agencies, the BOC and the Bureau of Internal Revenue (BIR), by installing competent and incorruptible officials in the said agencies.

“BOC and BIR officials must also be subjected to a regular lifestyle check and must submit their Statement of Assets and Liabilities and Networth,” Mendoza said.

FairTrade also proposed the revival of the Multisectoral Coalition Against Smuggling composed of the government, industry and agriculture associations and civil society to oversee the government’s antismuggling drive and the institutionalization of Industry Commodity Experts coming from the private sector.