Jesus Arranza, president of the Federation of Philippine Industries (FPI), said smugglers have been responsible for the decline of local industries and enterprises aside from cheating the government of some P40 billion in taxes annually.
Arranza said the country’s anti-smuggling laws are deemed to be "too easy" for smugglers since it only slaps a fine on the offender without being imprisoned.
He said smugglers continue to operate with impunity since they can easily pay the fine imposed by law because of the profits they make from their illegal activity.
In a statement, Arranza said FPI will ask the Senate to file a similar bill for consolidation once the proposal is approved at the House of Representatives.
Arranza said the FPI has inked a memorandum of understanding (MOU) with the government, through Anti-Smuggling Intelligence and Investigation Center (ASIIC), created by President Arroyo through Executive Order No. 155.
Under EO 155, ASIIC is tasked to investigate all violations of the Tariff and Customs Code.
Arranza said FPI initiated the MOU with the government "to level the playing field" and enable local manufacturers to compete in both local and global markets.
Under the agreement, the FPI will help ASIIC identify cases of misdeclaration, misclassification, undervaluation and underdeclaration of the volume of imported goods as well as other violations of Tariff and Customs Code.
The ASIIC will act promptly on the information by seizing the contraband or prevent its entry into the local market.
"FPI and ASIIC will cooperate in gathering evidence for the successful prosecution of cases of smuggling," Arranza said.
Arranza expressed hope that the MOU will help increase tax collection and ensure national security by preventing the entry of smuggled items into the country.
The FPI is also pushing for a thorough screening of importers to determine their capacity to import goods.
Industry leaders are also asking authorities to provide copies of shipping manifests to help them monitor all goods arriving in the country and enable them to audit all arriving cargo.