‘No smuggling at Cagayan Freeport’

BAYOMBONG, Nueva Vizcaya, Philippines – The Cagayan Economic Zone Authority (CEZA) yesterday belied claims that it is abetting smuggling and illegal gambling in its turf in Santa Ana, Cagayan.

Joyce Jayme, CEZA public relations chief, said they were saddened by the negative perception, including Sen. Miriam Defensor-Santiago’s statement that CEZA is a haven for smuggling and gambling.

“We are saddened by Sen. Santiago’s perception that the Cagayan Freeport is a smuggling and gambling haven and with her questions regarding CEZA’s output and contribution to the economy,” she said.

Earlier, Santiago also made last-ditch efforts for Malacañang to veto CEZA’s P891-million budget for this year, even describing the amount as Sen. Juan Ponce Enrile’s pork barrel.

President Aquino, however, went on to retain the CEZA allocation in the 2014 national budget despite Santiago’s appeal. 

Enrile, who has been at odds with Santiago, authored the law that created CEZA, which is based in Santa Ana, a neighboring municipality of Enrile’s hometown of Gonzaga in Cagayan.

A government-owned and controlled corporation under the Office of the President, CEZA, which also operates Port Irene, an international freeport, was created during the Ramos administration as a “growth nexus” in Cagayan Valley.

Jayme said CEZA does not and will never tolerate or abet smuggling, illegal gambling and other illegal activities in the special economic zone.

In fact, she said, goods and products destined for outside the Cagayan Freeport are subject to inspection, assessment, duties and taxation by the Bureau of Customs (BOC), which is always present during the importation proceedings.

“As a matter of policy and regulation, CEZA does not allow any equipment, goods and other products to be brought outside the freeport without the necessary clearance from the BOC,” she added.

This policy, according to CEZA administrator Jose Mari Ponce, also applies strictly to the importation of used cars through the freeport.

“(We will) only be allowing the release of imported used motor vehicles upon the clearance of the BOC, the Bureau of Internal Revenue, and the Land Transportation Office,” Ponce said. 

To ensure compliance and transparency, Ponce said these agencies are even invited to inspect and inventory the shipments of second-hand vehicles arriving at the freeport.

“It is unfair to accuse CEZA of allowing the proliferation of smuggling activities in our area where, in fact, it is the BOC that imposes duties and taxes on items to be brought out of our jurisdiction,” said Ponce, also CEZA’s chief executive officer.

CEZA re-allowed the importation of used vehicles in its freeport last December after a Cagayan court ruled that former President Arroyo’s Executive Order (EO) 156, banning the importation of used vehicles, “impliedly repealed” this.

In his decision dated Nov. 12, Aparri Judge Neljoe Cortez said Arroyo’s EO 418, which modifies the tariff nomenclature and rates of import duty on used motor vehicles, superseded EO 156.

The court said EO 418, issued on April 4, 2005, “rendered inoperative the ban on used motor vehicles” as contained in EO 156 issued on Dec. 12, 2002.

CEZA said the bulk of its approved budget for this year will go to the dredging or deepening of the navigational channel at Port Irene to accommodate larger vessels and meet international standards.

This, according to CEZA, has been incorporated in its development programs to transform Port Irene as a major transshipment point of goods and products as well as a “northern gateway” to East Asia, given its strategic location.

The National Economic and Development Authority’s regional office said the navigational channel is one of the region’s flagship projects to sustain CEZA’s economic growth not only for the region but for the whole country as well.   

“Our books of operations have always been open to the scrutiny of the Department of Budget and Management and Congress and we would like to assure the national government that the appropriations have been put to proper use,” Jayme said.