According to FPI president Jesus Arranza, Kingson International Trading Corp. was issued a warrant of seizure by the Bureau of Customs (BoC) last May 2005 for 3,000 metric tons of deformed steel bars which Kingson had misdeclared as SCM 440 alloy steel round bars in its import documents.
However, in reality, Arranza said, by their mere physical appearance, the imported bars were not as declared but were deformed steel bars.
The tariff rate for alloy steel is only one percent, while the tariff rate for deformed steel bars is higher at seven percent.
Kingson’s invoice for its round bar imports, Arranza said, listed a value of $230 per metric ton even though the price for deformed steel bars is $450 to $500 per metric ton.
While Kingson continued to insist to the BoC that it imported SCM 440 round bars, its Memorandum of Agreement to Sell dated April 7, 2006, described the bars as steel products of Grade 230 (structural grade) 10 mm/3.5 kilos more or less and Grade 230 (structural grade) 12 mm/five kilos more or less.
However, according to Arranza, "what is more alarming is that steel bars are subject to mandatory product standards."
Round bars, Arranza warned, cannot be used for concrete reinforcement.
The FPI, together with the BoC, jointly undertook a retrieval operation of the deformed steel bars being sold in hardware stores to bolster its accusation against Kingson.