DA seeks more powers over entry of imported meat

MANILA, Philippines - The Department of Agriculture (DA) has asked the Department of Finance (DoF) to be given more powers over the entry of imports by being allowed to reject the clearance of shipments that are undervalued and to require the submission of proof of tax payment of previous shipments for the issuance of import permits as part of efforts to fight smuggling of meat.

In a letter dated April 10, but obtained by reporters yesterday, Agriculture Secretary Proceso Alcala asked Finance Secretary Cesar Purisima to give quarantine officials the authority to reject the inspection and clearance of imported goods if these are undervalued.

Alcala said the DA is likewise asking the DoF to authorize the Bureau of Animal Industry (BAI) “to reject application or request for VQC (veterinary quarantine clearance), unless the importer shows proof of correct payment of customs duties or taxes of his or her previous importation.”

DA Assistant Secretary Davinio Catbagan said in an interview yesterday that the request was being made in line with the department’s efforts to address smuggling, which hog raisers have claimed to be hurting the industry.

He said that in Australia as well as in other parts of the world, quarantine officials conduct the inspection of imported goods first prior to the payment of duties.

“Here in the Philippines, the payment of taxes to the BOC (Bureau of Customs) comes first... Even if we see that the goods are undervalued, we cannot reject the inspection of goods because it is not within our authority,” he said.

He said that the DA also wants to be given the authority to require proof of payment of taxes of previous imports for the issuance of the VQC or the import permit as part of tighter regulation for shipments of pork.

He noted that at present, the issuance of import permits by the BAI requires that the importer is accredited and that the source of the shipment has also been accredited by the government.

Hog raisers launched a pork holiday at the weekend due to losses brought about by unabated smuggling of pork.

Smuggling, Rosendo So, spokesperson of the Swine Development Council said earlier, happens through the declaration of pork choice cuts as offal, which is subject to lower tariff.

Fat offal skin is subject to five percent tariff, while pork choice cuts are slapped with a higher tariff of 35 percent.

“Over the weekend, backyard hog raisers have launched a two-day pig holiday, which represent 70 percent of our total production,” Edwin Chen, president of the Pork Producers Federation of the Philippines, Inc. said in a text message yesterday.

Catbagan said though that despite the pork holiday at the weekend, the supply of pork remains normal.

“There is no reason for prices to go up because supply is normal for now,” he said.

He said he met with So yesterday to inform him of the actions being taken by the DA to curb smuggling.

When asked if hog raisers would be implementing another pork holiday, So said they would want to see the actions being taken by the DA first.

“We are waiting for the Secretary to act on his commitment to us,” So said.

He said that hog raisers would also want the DoF to act on the request of the DA. “We hope they will act on it,” he said further.