An appeal for balanced view

Consistent with this column’s principle of giving both sides space for a free and open debate on issues, we are featuring today the side of meat importers. Manny Macainag Jr. wrote this letter in response to an earlier letter sent by another reader. Let’s hear the side of those who import hogs.

 Not against local raisers

“I write to you in response to your column Bizlinks published, May 14, 2012, about pork which has been an issue for some time. I am not against the hog and poultry raisers for I have close friends and relatives in the same business.

“I am an importer with a minimal MAV (minimum access volume) allocation. Lately, we have suffered delays and additional costs in the form of storage, electrical and demurrage charges due to the stricter implementation of monitoring and 100 percent inspection by the Bureau of Customs to ferret out what the hog raisers claim are technical smuggling.

“Added to this, demand or sales dramatically dropped either because people are not buying because they have an alternative cheaper poultry meat or it is the onset of classes and tuition fees are a priority. Poultry prices, if you check in the market, are up.

“In fairness to commissioner Ruffy Biazon and the officers at BAI (Bureau of Animal Industry), NMIS (National Meat Inspection Service) who became sacrificial lambs, I am proud to say that, so far, none has been apprehended from the ranks of the meat importers as continuously alleged by the hog raisers.

 Meat importation cycle

“Let us take a closer look at the whole cycle of meat importation.

“1. All meat importers undergo accreditation by NMIS and the BOC (Bureau of Customs). They register under the I-CARE program. They secure MAV allocation from the BAI at the beginning of the year.

“With MAV, the BAI has predetermined how much volume needs to be imported for local consumption. These MAV holders include the meat processors that use them for their production.

“So, it is safe to say that the BAI determines how much production capacity the hog raisers have for the year as against the allocation to be issued the meat importers.

“2. Offals, skins, cutting fats, ear drums, pork legs, and the like are imported without the need for MAV allocation. A simple import permit is applied and secured from the Bureau of Animal Industry prior to importation. These are levied lower duties.

“In the same manner, choice cuts of pork like ham leg, shoulders and bellies – which are rated at 40 percent duties – require an import permit but the importer must have MAV allocation. Otherwise, a safeguard duty is added on top of the 40 percent.

“3. The supplier or the exporting country (i.e., USA, Canada, Europe, Australia) requires a copy of the import permit prior to exporting the goods as these are submitted for the issuance of health certificates.

“Inspection by the authorities prior to shipment is also conducted to assure that only meat of good quality is loaded. Here, the batch codes, slaughter date, packing date, and expiry dates are noted on the health certificates. These are required so that there is traceability should any problem with the product occurs.

“4. Upon arrival of the goods, the documents are processed with the BOC for release. Duties are paid and the containers pass thru X-ray examination. A quarantine officer inspects the documents and the goods as well. It is sealed prior to delivery at the consignee’s warehouse facility. Here, the container can only be unloaded on the presence of a veterinary doctor from NMIS.

More delays

“With the melee the hog raisers created, the BOC imposed that a 100 percent examination be conducted during unloading. These will have to be coordinated with the NMIS doctor. Again another delay.

“With this system in place, there is no way that smuggling can be done. The exporting countries (USA, Canada, Europe, Australia, New Zealand) will not participate in any form of smuggling. They will never tolerate this nefarious activity.

“Choice cuts of meat will not be declared as offals or any lower tariff product as the health certificate will not be issued to declare them as such. To accuse the importers of smuggling is to say that these exporting countries tolerate these activities.

“I have visited some slaughter plants and meat cutting plants in Europe. I am amazed at how systematic the whole process is executed. Give them a batch code of their product and they can give you a record of which plant it came from, which agent/trader it was sold to, which truck transported the goods, from whose farm it came from, what breed or lineage it was, what medications and feed formulas were given to the livestock, up to the egg or the grandparent where it came from.

 Inconsistencies in local produce

“This is primarily the reason why the meat processors cannot buy their requirements from the local hog raisers. They simply cannot supply the consistency of the quality that imported meat provides the meat processors whose priority is quality and price.

“What is sold in the wet markets are the low tariff products (jowls, ears, pork legs, and offals). The meat processors import choice cuts (bellies for bacon, shoulders for tocino and meat loaf, ham legs for Christmas ham).

“What the hog raisers claim as technical smuggling deserves to be studied further before any haphazard action affects the industry. Truly, international prices went up dramatically just recently. Practically all commodities. Not just meat. Sugar, rice, oil, name it.

“What the BOC use as reference values are values before prices went up. With the raising of tariffs to ridiculously high levels, the meat importers with MAV allocation will stop doing business. Thousands of meat processors’ employees will be affected. The BOC’s target collection will diminish further.

 Keeping the balance

“Lesser capital revolving in the economic system, lesser taxes for the government. So now, who is affecting who? Who lost more? The hog raisers or the general public? For goodness sakes, let’s keep the balance. This scenario will only benefit one sector.

“I am hoping that our plight as contributors to the industry be recognized and not be accused of smuggling as they falsely claim. So far to this day, since the BOC implemented 100 percent examination, there was never any apprehension of any import shipment of choice cuts that were declared as offals.”

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Should you wish to share any insights, write me at Link Edge, 25th Floor, 139 Corporate Center, Valero Street, Salcedo Village, 1227 Makati City. Or e-mail me at [email protected]. For a compilation of previous articles, visit www.BizlinksPhilippines.net.