Conflicting trade statistics

This is in reaction to “We’re not sleeping on the job, says Customs chief,” The STAR, 2/26/2013.

Two government statistics agencies point to Year 2012 rice importation by the Philippines to be grossly in excess of the 500,000 metric tons (mt) approved by the NFA Rice Council. The Statistics Office of Vietnam show rice exports to our country at 1.1 million mt, valued at $468,000 (P20B) from January to November 2012. Our very own National Statistics Office (NSO) for the same period has reported rice procurement from Vietnam alone at 802,000 tons with a landed cost of only $340,000 (P14B).The NSO further reports importation from other sources (India, Myanmar, Pakistan and Thailand) of some 200,000 metric tons raising to 1.2 million tons the volume that entered the system in 2012, excluding alleged rice smuggling in ‘undermanned’ ports in the Visayas and Mindanao. No wonder industry stakeholders are “up in arms.”

In our opinion, the figures are not consistent with the NFA’s claim that “500,000 tons” were allowed for importation, “Phl to increase exports of premium rice,” The STAR,  2/26/2013. Worse, entries in the NSO-sourced by the agency from Bureau of Customs (BOC) import documents — point to gross undervaluation. For the period January - April 2012, rice imports were declared at half international benchmark prices; Vietnam’s 5 percent brokens were declared at $277/ton against $446 international price indicators; India at $240; Pakistan at $270; Thailand at $276. In April 2012 alone, rice importation subject to the 40 percent tariff was declared at $279, and $445 for those deemed tax exempt. The practice appears meant to dodge settlement of correct import duties. In subsequent months, landed costs as reflected in NSO surprisingly were at par with international quotes presumably on account of President Aquino himself informing the BOC of an abandoned rice shipment in the Subic Freeport estimated at 21,000 tons worth nearly half a billion pesos.

The BOC is called upon to reconcile conflicting trade statistics to address once and for all this nagging issue of undervaluation and meet its collection targets, with rice just one of thousand items to monitor! — MANUEL Q. BONDAD, manuelbondad@yahoo.com