SINAG blames BoC’s propensity to undervalue tariffs

Billions of Pesos Lost in the Coffer

By Mortz C. Ortigoza

Because of the propensity of the Bureau of Customs (BoC) to under value the importation of rice, billions of pesos have been deprived as uncollected tariff, bemoaned by the chair of the Samahang Industriya ng Agrikultura (SINAG).

In a recent hearing at the House of Senate in Pasay City, Sinag Chairman Rosendo So bared that before the implementation of the RiceTariffication Law, the BoC collected only 35% instead of the 50% of the out of quota outside the Minimum Access Volume (MAV).

MAV refers to the volume of a specific agricultural product that is allowed to be imported with a lower tariff as committed by the Philippines to the World Trade Organization (WTO) under the Uruguay Round Final Act.

“Dapat collection sa Customs is out-quota 50% collection. Bakit sa record ng BoC is 35%? Kung 50% iyong magkulekta sila doon sa mga importers may adjustment tama collection,” he cited.

DOUBLE STANDARD - Samahang Industriya ng Agirkultura Chairman Rosendo So (blue shirt) exposed at the recent hearing of the House of Senate the double standards of the Bureau of Customs in billing a tariff to the same importers since 2006 to present.

He said this malpractice affected the prices of the local palay.

“Dahil maraming under value iyong ibang traders mas mababa ang value makabenta sa outlet ng mas mababa. Pero ano ang mangyari niyan baba ang presyo ng palay so dapat ma collect ito ng Customs ma check iyong mga nag iimport”.

He cited that in January to July, importers paid only $U. S250 per metric ton (M/T) on the undervalued import when they should be paying U. S$300 per M/T.

“Unfair sa mga businessmen na nagpasok na nagbayad ng taripa. So ma collect itong 700 M/T sa nag under value parehong suppliers pero iyong presyo ang layo”.

Senator Cynthia Villar, the chair of the Senate Committee on Agriculture and Food, questioned BoC Deputy Commissioner Edward Jan Buco's discrepancy in the collection of tariff for the same supplier.

“Same suppliers Vietnam tapos iyong iba mababa iyong iba mataas?”

Bucao vaguely reasoned out that the valuation was under the computation of the World Trade Organization as the document presented to the BoC by the same suppliers seemed to be authentic.

Villar wanted the controversial manual valuation replaced by single window system so all imported rice that entered the Customs office are imposed with the same tariff.

Deputy Com. Buco told Villar that these importers that Chairman So assailed to skirt the 50% tariff can still be liable to pay despite the post audit that the BoC will do.

The SINAG chair lamented that with 350,000 metric tons of rice allowed in the MAV yearly, importation outside of it deprived the government with a rightful tariff.

“Ibig sabihin iyong nakukulekta natin na taripa doon lang sa MAV. Outside iyong napupunta sa NFA nawala taripa so sayang na hindi na nakukulekta ng gobyerno iyong pera”.

He cited that importations in our country in the following years: 1.6 million metric ton (MMT) in year 2006; 1.8 MMT 2007; 2.3 MMT in 2008; 1.7 MMT in 2014; 1.9 MMT in 2015; 989, 088 MMT in 2016;1, 047, 199 in 2017.

His computation from January to December 2018 was 1.9 MMT of imported rice that entered the BoC.

“Itong 2018 1.9 MMT pinasok natin iyong kalahati may taripa iyong kalahati wala. May smuggle kami nakita 400, 051 metric tons outside 2018 pinasok natin”.

He disclosed that in January to February this year the National Food Authority imported 900, 000 M/T without paying a tariff even before the implementation of the Rice Tariffication Law.

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