FPI asks Senate to prioritize anti-smuggling measure

MANILA, Philippines - The Federation of Philippine Industries (FPI) has asked the Senate to first pass the anti-smuggling bill before ratifying the Revised Kyoto Convention (RKC) to protect local businesses.

The RKC was approved at the level of the Senate committee on foreign relations early last week. The proposed anti-smuggling measure, on the other hand, is still in the hands of the technical working group at the Senate.

FPI president Jesus L. Arranza said ratifying the RKC will legally obligate the Philippines to pursue and adhere to the Customs standards as mandated by the amended International Convention on the Simplification and Harmonization of Customs Procedures, within a given time frame.

“Every country that ratifies and accedes to the RKC must accept all the provisions of the Body of the Convention and the Standards of the General Annex without reservations and ensure that its national legislation are compliant with all these provisions and implemented within 36 months from date of accession,” Arranza said.

“We hope the Senators will not approve the committee report on the RKC at the plenary,” he added.

Arranza stressed that for a developing country like the Philippines, the adoption of trade facilitation measures should have no attendant international obligations that restrict domestic flexibility and policy space.

He noted that the Philippines is still in need of internal reforms that will primarily ensure proper and efficient compliance with existing customs and tariff laws.

This, he said, is why the country should first enact the anti-smuggling bill, which will address present and future concerns affecting customs procedures and the protection of government revenues at the border.

Arranza said if Congress would pass the anti-smuggling bill and immediately thereafter have the RKC ratified by the Senate, the Philippines will be accorded a three-year window to be compliant with the provisions of the Convention.