Senator as Chairperson of the Senate Committee on Ways and Means with Senator , held recently a public hearing on the proposed Fiscal Incentives Bill and the Anti- Smuggling Bill, which FPI has been vigorously supporting. FPI on Anti-Smuggling and Fiscal Incentives Bills

he Federation of Philippine Industries (FPI) presented its T recommendations to the Senate Ways and Means Committee for possible incorporation on the proposed Anti-Smuggling and Fiscal Incentives Bills. Senator Ralph Recto, with Senators Juan Ponce Enrile and Juan Flavier as members tackling the two essential bills, chairs the Senate Committee on Ways and Means during a well-attended public hearing held recently at the Philippine Senate.

FPI Recommendations on the Anti-Smuggling Bill:

FPI, through its President, Mr. Jesus L. Arranza, recommended the following for possible incorporation on the proposed Anti- FPI President Jesus L. Arranza joined the round table discussions Smuggling Bill: with President Gloria Macapagal-Arroyo on various issues of • All Inward Foreign Manifests (IFMs) should be published in national concerns, which was aired, live via NBN Channel 4. the Bureau of Customs and/or in the Department of Trade and Industry’s web sites. President Gloria Macapagal- FPI Legal Team to assist BOC • All Import Declarations should follow the Harmonized System Arroyo approved in principle the of 8-digit heading to prevent misclassification. issuance of an Executive Order, President Gloria Macapagal-Arroyo • Every classification by Tariff Heading should have value range requiring all government welcomed the assistance of the and date, which should be published in the BOC and/or DTI agencies and government Federation of Philippine Industries websites and periodically updated. owned or controlled cor- (FPI) to help the Bureau of • The Department of Finance (DOF) should do all encoding of porations including Customs (BOC) prosecute import documents. units to procure locally-made smugglers. In the round table • All import documents should be microfilmed. products, during the roundtable discussion which was shown live • Private lawyers should be allowed to prosecute customs and discussion which was recently in NBN-Channel 4, Mr. Jesus L. smuggling related cases under the control and supervision aired live in NBN-Channel 4. If Arranza, FPI President, reported to of the Bureau of Customs. this E.O. is finally issued, it will President Arroyo that the continue on page 4... continue on page 2... continue on page 2... continued from page 1... continued from page 1... FPI to conduct symposium on best PGMA endorses... FPI Legal Team...

industry practices on productivity boost the local industry, preserve Federation has formed a legal team and increase local employment and that will assist the BOC in the base pay at the enterprise level save our country’s dollar reserves. preparation and prosecution of smugglers and other violators of the Tariff and Customs Code of the In the expanding global economy, it is critical to improve the competitiveness Mr. Jesus L. Arranza, President of . of the labour-management partnership to keep business growing. the Federation of Philippine Industries (FPI), who suggested Mr. Arranza said that the reception In this light, the FPI Labour and Productivity Committee will conduct a the subject to President Arroyo, of President Arroyo on the matter Symposium on Best Industry Practices on Productivity Base Pay at the said that the issuance of the E.O. will further encourage the FPI Legal Enterprise Level with the theme Achieving Enterprise Growth, Expansion Team to push through with its and Profitability Through Labor and Management Social Partnering, which would be very timely, because the assistance to BOC and help the will be held on the third week of July 2006. Philippines is not yet a signatory latter prosecute the smugglers until on Government Procurement conviction. The objective of this event is for selected companies to present the under the WTO. President Arroyo productivity based pay and other incentive schemes that have been proven instructed Mr. Arranza to President Arroyo said that while effective in their enterprise and in their respective industries. This will be there are so many cases filed in immediately draft the E.O. so that court, the ultimate objective is to organized to show how that CEOs and HRs with labour involvement worked it can be reviewed by government obtain final conviction. to develop and apply the said different productivity and incentives schemes. lawyers to determine if it will With this in mind, the Federation will invite enterprises which adopt Volunteer lawyers from FPI industry productivity based pay scheme, which belongs to labour intensive industries violate any existing international agreement. members as well as concerned and ideally from the glass, garments and textiles, ceramic tiles, chemicals lawyers coming from different law steel, food and beverages, home appliances, semiconductors and offices have come forward to help electronics and other sectors like furniture making. The support by Pres. Arroyo to the assist the national economy by recommendation of FPI is well preventing the unlawful deprivation The format of the presentations should answer the following questions, appreciated by both local industry of the Government of much- namely: and labor. needed revenues and protect the interest of the various industries and businesses in the Philippines. The 1. What are the parameters measured? The E.O. will require government 2. How are they measured? campaign will help prevent smuggled agencies to procure locally imported goods from unfairly 3. When are they measured? competing with legitimate 4. Who conducts the measurement? produced products, materials and supplies, provided, it is adequately businesses in the Philippines and 5. What are the quantifiable results and how these translated into insure national security via the the monetary or peso value? Or their comparative percentage available, the price is competitive prevention of prohibited articles from increases if the information are confidential. and within standards required by entering the country. 6. How was it sustained? the users. Meanwhile, this project is still Invitees in this event are the CEOs, HR practitioners, labour group Hence, the issuance of this E.O. pending with the BOC as their initial reaction is that only customs lawyer representatives, and other stakeholders such as members of academe will not motu proprio ban (faculty and students) and LGU social covenant signatories representatives can handle these cases. However, from Davao, Benguet, Negros and . importations. FPI believes otherwise.

To make the discussions more meaningful, the Federation will invite experts from the International Labor Organization (ILO), United Nations More significantly, both biofuels are environmental friendly and Development Programme (UNDP), Freiderich Erbert Stiftung (FES), the therefore non-polluting. They do not contain any toxic substances, Department of Labor and Employment-Institute of Labour Studies (DOLE- hence, their burning do not produce any harmful emissions nor green ILS), and the U.P. School of Labor Relations (UPSOLAIR) as resource persons. house gases. Furthermore, they promote fuel security as well as accelerate countryside growth with the use of sugar cane for bioethanol FPI calls for immediate passage and coconut for CME production.

of Ethanol and CME Bills FPI President Jesus Arranza said “Never have we seen such The Federation strongly supports the immediate enactment Philippine made products that offers a win-win solution to our people, of the House proposed Cocodiesel Act of 2005 which mandates to our environment, to our motorists, to our farmers and to our biofuel CocoMethyl Ester (CME) blending in diesel fuel, and the Senate producers and distributors”. Biofuel Act of 2005 for the mandatory blending of both BioEthanol and CME in gasoline and diesel, respectively, under one bill. The House of Representatives already passed on its third and final Meanwhile, Senate Bill No. 2226 otherwise known as the Biofuels reading Substitute House Bill 4629 on ethanol blending in gasoline. Bill has been endorsed by the Senate Joint Committee headed by the Committee on Energy chaired by Sen. Miriam Santiago. Ethanol and CME fuels are indigenous, renewable, biodegradable and it is safe to store. In general, they serve as substitute, additives and alternative fuel resources. Both fuels are The proposed measure was also endorsed by twenty Senators, energy efficient. They can be blended in any ratio up to 100% which if approved, shall implement the mandatory blending of ethanol and increases engine efficiency due to their superior detergency, lubricity and solvency properties. It is reported that a 1-% CME on gasoline and biodiesel on diesel as enhanced motor fuels. Presently, blend can increase engine mileage by as much as 17% or more. the bill is subject for floor deliberations. BUSINESS OPTIONBUSINESS OPTION by FPI Director George S. Chua

Turn your job into a P.E.A.R.L.

There are a lot of people who would go through anything to get a people a chance to explain their actions before jumping to job or a promotion they wanted and once they get it, they blotch conclusions and taking action without the benefit of hearing both up the whole thing. I have a simple reminder to everyone to sides. keep the luster of their jobs just like a shiny and valuable pearl. Your job is a constant learning experience. Adapting to new For this to happen, just remember that PEARL stands for Purpose, technologies, changes in market conditions, having more Energy, Attitude, Respect and Learning. competition, the introduction of additional rules and regulations, increasing costs and other challenges will always be present. First of all, your job must have a purpose, and more importantly, The only way you can keep up is if you are willing to adapt. you must understand what that purpose is. If what you do in the Those who are willing and eager to keep on learning, training organization has no importance or relevance, then it is as if you and expanding their level of knowledge are the only ones that will do not exist and no matter what you do, you will not be able to do well in this globalized economy. As you learn, you should also find fulfillment in your work. On the other hand, if you appreciate impart and teach what you have learned to others for the benefit what your role is and the value of your work, no matter how of the entire organization, this will also be to your own advantage. small it is, then you should do your job well. Remember, a space After all, if the organization is stronger then you will ultimately shuttle blew up because of a defective O ring. benefit from working in a progressive company.

Put a lot of energy into your job. For you to do your job effectively To those of who are just starting your own careers, get started your mind and body must be in great shape to take in the physical on the right path. If you treat your job like a PEARL then it will and mental demands to ensure that you are able to effectively take good care of you too. (Comments may be sent to execute what is expected and when it is required. High rates of [email protected]) tardiness and absenteeism brought about by such excuses as being sick, not feeling well, having a headache and so on indicate at best someone who is not up to the task at hand and at worst someone that cannot be trusted and relied upon. To ensure your optimal energy level you must have the proper diet, exercise and prudent work habits. It does not make sense to work until the wee hours of the morning and be absent the following day, unless of course there was a compelling reason to do so. A balanced lifestyle should also be a guiding principle.

A positive attitude on the job goes a long way in making you an asset to the organization. Having a “can do” attitude makes you a magnet for more challenges and responsibility which will ultimately lead to further advancement in your career or success in your business. Having the right attitude makes you more approachable and will result in creating a friendlier atmosphere around you and foster more goodwill. This makes working as a team possible. Having a sincere attitude in helping others also allows you to make constructive criticism towards others that will be well taken and hopefully result in improvement in the organization.

Respect for others regardless of age, sex or rank is not only desirable but is a necessary ingredient in professionalism at work. Respect for the institution and its rules and regulations is essential for you to be able to do a good job, otherwise you end up just deceiving yourself and being unfair to the organization. While you are not expected to agree to everything going around you, the proper channels to voice your opinion must be followed. To say one thing and do another is a sign of total disrespect. Avoid criticizing people behind their backs, the best approach is to be upfront about your feelings or just keep your mouth shut. Give continued from page 1... FPI on Anti-Smuggling...

• Special Court should be created/ • System of liquidation of imports • Provide incentives in proportion established/designated to try through bonded warehouses should to the extent that each company customs and smuggling related pass through the Industry exports to encourage industries cases. Commodity Experts (ICE). expand gradually into the global • Free Ports should not be used • Smuggling should be categorized as markets. as ports of entry for products economic sabotage, and, • Simplify incentives calculation e.g. destined for domestic market. • While the law on plunder covers the by gross income tax. • All PEZA locators should submit value amounting to P50,000,000.00, • No income tax holiday (ITH)/tax monthly report to the DOF. for purposes of smuggling the value exemptions be granted to new • All PEZA locators should pay should be cumulative. Hence, if the investors serving the domestic taxes upon importation of totality of value involved will amount market which is already being products and to be immediately to P50,000,000.00, it shall be covered substantially served by local reimbursed upon the exportation by the law on plunder. industries. of products. • Grant ITH to new players in a FPI recommendations on the Fiscal particular industry if the existing • All Customs Bonded Warehouses Incentives Bill: should only be for manufacturing players are enjoying the same privilege for the sake of and for export. To level the playing field both for the • COA and the Private Auditing domestic and global competition, FPI generating a level playing field, Firm should be allowed to conduct recommended the following provisions to provided the incentives are co- ALL kinds of Audit following the be incorporated in the bill: terminus with the first incentive established guidelines in the granted. Bureau of Customs. In the • Harmonize and coordinate all tax • Consider Net Operating Loss incentives even when these are event the audit is conducted by Carry Over (NOLCO) and applied by several government a private auditing firm, the latter Accelerated Depreciation as agencies (BOI, PEZA and EPZA/ regular (not special) shall only be paid if SEZs). a deficiency is incentives for businesses discovered and that that suffer financial the professional fee difficulties in their initial shall in no case be year/s of commercial operation. more than 30% of Eliminate the Minimum whatever deficiency • Corporate Income Tax they may discover, (MCIT) to newly payable upon the registered enterprise as it finality of the audit burdens the start-up of and collection. the business operation. • Formulae of Manufacture should • FPI, however, have be done in some reservations on consultation with the granting of ITH the concerned longer than four years for Industry the following reasons: Associations and The fiscal incentives FPI Chairman Meneleo J. Carlos, Jr., and President Jesus L. Arranza, 3rd • preferably on actual granted last year has production. L-R, attended the public hearing on Anti-Smuggling and Fiscal Incentives Bills. In the background, far left, is FPI Executive Vice-President, Edison amounted to P229.4 • There must be billion- which is enough to Co Seteng. stricter rules on cover the P199.9 billion accrediting bonding budget deficit. Such deficit have companies, importers and • Provide export tax incentives to all resulted to the raising of the VAT brokers, preferably done jointly export-oriented industries and export and the corporate income tax to by BOC and DOF representatives. processing zones to provide a level 35%, which reduced our • Reward system. The BOC should playing field against foreign markets and cost be allowed to receive grants from competitors who normally enjoy such competitiveness. the private sector. privileges. continue on page 5... FPI, Insurance Commission tackle Customs bonding irregularities

The Federation is continuously monitoring • Client reporting which is necessary to ferret developments especially on how the BOC out over-transaction or suspicious transactions handles the problem on the issuance of surety entered into by bonding companies. The bonds particularly to raw material importers Insurance Commission will ensure that this passing through bonded warehouses for use objective is achieved. in the manufacture of finished goods for re-export • All industry players shall be listed in the web but later on find their way into the domestic site of the Insurance Commission, giving out market. The enormous amount of unpaid full information about them. liabilities to the government is an outstanding • A circular is to be issued out by the Insurance issue in the BOC as this remained unchecked Commissioner to require insurers to settle all and unsettled. their obligations to the BOC. • A closer coordination is needed between the Commissioner Escobillo said that she had held FPI Chairman Meneleo J. Carlos, Jr., seated 4th, L-R, is Insurance Commission and the Bureau of regular dialogues with Customs to ferret out seen in this photo explaining the purpose of FPI’s meeting Customs and possibly with representations from problem of this type. In one of her meetings with with the Insurance Commissioner Evangeline Escobillo, FPI. the former Customs OIC, Alexander Arevalo, seated in the center. Other FPI members in the photo are, Any bonding company, which will issue bonds she said that she had an exchange of ideas • L-R, Mr. Vicente Castro of the Philippine Sugar Millers amounting to over PhP500, 000, or any Association; Mr. Luna Go of the Textile Producers with him as to how they can enhance Customs’ bonding system particularly, those surety transactions entered into and found out to be Association of the Philippines, Atty. Rufino M. Margate, suspicious should be reported to the Office of Jr., FPI Secretary General. companies who were unable to liquidate their balances with the government. the Insurance Commissioner. The Federation of Philippine Industries (FPI) met with the Other members of the FPI delegations who met with Commissioner Evangeline Escobillo of the Insurance In view of all these mounting problems, the FPI the Insurance Commissioner were Directors Luna Commission and discussed the various problems besetting and the Insurance Commission agreed to hold regular meetings to continuously monitor Go and Ernesto Ordoñez, Mr. Mario Jose Sereno, the bonding system in the Bureau of Customs (BOC) and the developments and address all problems relative Executive Director of the APMP; Mr. Vicente Castro, tremendous amount of liabilities owed by bonding companies to bonding system in the BOC. To address the Assistant Director of the PSMA; Atty. Rufino M. to the government. FPI Chairman Meneleo J. Carlos, Jr., said problems brought up to her attention by the Margate, Jr., FPI Secretary General and Mr. Mau this situation affects industry because of rampant smuggling in FPI, Commissioner Escobillo, cited the following R. Arce, FPI Secretariat. the forms of undervaluation, misdeclaration, misclassification items that the Insurance Commission will (FPI News-MRA) among others. undertake: continued from page 4... FPI airs views on Anti- Smuggling...

• The grant of longer tax • Unless we can collect more taxes Those who attended the Senate exemptions will further delay the to develop our infrastructures, hearing from the FPI were recovery of our markets (reduced Chairman Meneleo J. Carlos, Jr., educational system and industry purchasing power by VAT) and President Jesus L. Arranza, cost competitiveness (higher competitiveness, we progressively Executive Vice-President Edison Co corporate income tax), which become less attractive. Seteng, Secretary General Atty. eventually make us less attractive • It should be noted from the foreign Rufino M. Margate, Jr. Other FPI for investments, while favoring a chambers, that market and cost industry members who attended few. This is tantamount to class the hearing included: Mr. Chris legislation where tax benefits competitiveness are critical factors Nelson, Country Manager of Philip favor a few but burdened the for choosing an investment site. Morris (Philippines) International many. Hence, before more • Countries like Hongkong and Manufacturing Corporation; Mr. extensive ITH are granted, Mario Jose Sereno, Executive government should first remove Ireland attract investments even Director of the Association of the added tax burden. without granting tax holidays simply Petrochemical Manufacturers of the • Before we attract investments, because of their low costs including we need first to improve our Philippines, Mr. Vicente Castro, the tax levels they impose. Hence, infrastructures, which will bring in Asst. Director of the Philippine more economic benefits to our we should set our goals in this Sugar Millers Association, among others. people and existing industries. direction. Customs Issuances Customs Issuances

CMO 1-2006: This Order suspends the the Transaction Value System and the OCOM to evaluate the warehousing entry delegated authority on personnel Harmonized System and to facilitate trade (SAD) to determine if there is any movements in the Bureau by the through prompt settlement of valuation and discrepancy; and (c) the Bonds Division to Commissioner by virtue of the powers classification disputes. make the corresponding adjustment on the vested under Section 608 of the TCCP. The covering bonds on warehousing entries provisions of Customs Memorandum Order CMO 8-2006: This Order refers to the found with discrepancies. No. 25-2001 dated 28 September 2001 and “Certification and Authentication of Certificate all other rules and regulations that are of Origin by the Philippines Commercial Attaché CMO 14-2006: This Order provides rules inconsistent with the said issuance is in Country of Export for Products covered by in the payment of duties and taxes to likewise deemed suspended. Safeguard or Anti-Dumping Duty”. authorized agent banks in order to ensure proper collection of cash payments and CMO 2-2006: This Order repeals CMO 9-2006: This Order mandates that no forestall irregularities in the payment Customs Memorandum Order No. 23-2004 imported plastic raw material, such as but not system. and reverting the operational control and limited to “resins”, shall be processed/released supervision of the Vehicle Importation without securing clearance from the Office of CMO 15-2006: This Order requires “the Compliance Monitoring Unit from the the Commissioner, to the attention of the VRIS/ mandatory submission of written clearance Intelligence and Enforcement Group to the OCOM. from the resident Collector of Customs Office of the Commissioner. assigned at PEZA/FREEPORT Zone CMO 10-2006: This Order provides for concerned as Port of Destination for CMO 3-2006: This Order refers to the “Special rules prescribing the exercise and transshipment cargoes and/or for bonded provisional renewal of lapsed designations conduct of examination, searches and seizures articles subject of a constructive in the Bureau of Customs for all positions pursuant to the provisions of Section 2536 of exportations and bond liquidation”. in Acting Capacity. the TCCP, as well as the custody of and responsibility over the articles or goods seized CMO 16-2006: This Order “protects the CMO 4-2006: This Order provides for as incident thereto”. salary of BOC employees as per the additional guidelines in the application of Presidential Anti-Graft Commission, in Wharfage and Arrastre Charges for CMO 11-2006: This Order provides for accordance with the Integrity Development Assessment Purposes. “Definitive General Safeguard Duty on Plan which requires government agencies importations of Clear Float Glass from Taiwan to protect the salaries of employees by CMO 5-2006: This Order amends CMO and Pakistan”. strict implementation of Section 36 of the No. 6-2003 dated 2 April 2003 (Certificate General Appropriation Act”. of Origin for products covered by CMO 12-2006: This Order provides guidelines Safeguard Duty or Anti-Dumping Duty in the “Disposition of seized, confiscated and CMO 17-2006: This Order pertains to the regardless of ports of exportation). abandoned motor vehicles that are already “re-implementation of Customs deemed properties of the Government”. Memorandum Order No. 25-2001 dated 28 CMO 6-2006: This Order prescribes for September 2001 with certain the “rules and regulations governing the CMO 13-2006: Amending CMO 9-2006 modifications aimed at streamlining accreditation of Customs Brokers regarding the securing of clearance from the personnel movement” at the BOC. transacting with the Bureau of Customs Office of the Commissioner prior to the release and for other purposes”. of any shipment of plastic raw materials, this CMO 18-2006: This Order provides for Order provides exemptions to all shipments of “Effective MFN rates of crude and refined CMO 7-2006: This Order establishes the plastic raw materials or resins entered under petroleum products based on certified Central Valuation Classification Review the Warehousing System to secure clearance trigger prices by the Department of and Ruling Committee in order to expedite from the Office of the Commissioner as Energy”. the resolution of cases in all ports which stipulated under CMO 9-2006. In lieu thereof: remained pending for a considerable (a) the concerned Operating Warehousing Any FPI member who is interested to period of time, to provide a mechanism Division or its equivalent unit shall submit to secure a copy of any of the above for the review of VCRC resolutions which the VRIS/OCOM through the WDRD a daily list issuances, please call FPI Secretariat, c/o are adverse to the government, to ensure of plastic raw materials imported or resins Mr. Mau R. Arce at telephone nos. 817- uniformity and consistency in the together with copies of the SAD processed 0581 and 844-0324. application of the principles and rules of under the warehousing system; (b) the VRIS/ PHILIPPINE SUGAR MILLERS ASSOCIATION

Mr. Jesus L. Arranza President Federation of Philippine Industries, Inc. #308 Senator Gil Puyat Avenue Makati City

Dear Jess,

The Philippine Sugar Millers Association (PSMA) values its membership in the Federation of Philippine Industries, Inc. (FPI) and would definitely support FPI in all its endeavors to have a stronger voice representing Philippine Industries. We initially joined it over a decade ago because the other organization was just behaving as a political support group. The FPI was willing to voice out the problems of indigenous Filipino industries which did not favor accelerated import tariff reduction schemes nor overly expensive and unreasonably stringent pollution legislation. To our chagrin, tariff reduction and stringent pollution legislation was welcomed by multinationals at the time as they were the importers and had the capital to spend in any kind of global compliance standard as it only matched their own company’s rising costs in their home country.

We have shown our support for FPI and appreciation for being heard by active involvement in Committees and providing the Association with the valuable time of our officers, notably Mr. V. Francisco Varua and myself, among others.

We have therefore reviewed out commitment and agree to consider a continuation of our Grant for the International Trade Committee for 2006 subject to the same conditions. In addition, the PSMA shall make a donation to be a Patron of your new office in recognition of the valuable work FPI has done to benefit our industry.

Lastly, we are agreeable to join your Website Ad and Link invitation and expect that our continued subscription to your publications shall be free or deemed paid.

Kindly indicate if you are agreeable with the above arrangements so we may include same in our budget and advise our staff accordingly. Very truly yours,

JOSE MARIA T. ZABALETA Executive Director cc: Mr. Francisco Varua, President, PSMA

1402 Security Bank Centre, 6776 Ayala Avenue, Makati City 1226 Philippines Tel. (632) 891-1202 ● Fax (632) 891-114 ● Email: [email protected] ● Website: www.psma.com.ph FPI, PPSQF, DTI-BPS, DTI-CIAP, DILG and BFP to launch nationwide information campaign on Mandatory Product Standards

Director Jesus L. Motoomull, who readily agreed that this will enhance the capabilities of government in monitoring substandard, more specifically construction materials, without added cost to the government for its manpower requirements.

In the event this materializes, the government would now be armed with countless personnel who would be tasked in monitoring all products covered by the mandatory product standard nationwide.

This move is also in preparation on the issuance of an E.O. requiring all government offices to procure locally-made products, which President Arroyo approved in principle.

The private sector is represented by Mr. Meneleo J. Carlos Jr., and Mr. Jesus L. Arranza, Chairman and President of the Federation of Philippine Industries (FPI), respectively; together with Mr. Edison (L-R) DTI Dir. Jesus L. Motoomull; FPI Pres. Jesus L. Arranza; FPI-EVP Co Seteng, Ceramic Tile Manufacturers Association (CTMA); Mr. Edison T. Co Seteng; FPI Chairman Meneleo J. Carlos, Jr.; Atty. Rufino M. Salvio Perez, Puyat Steel; Mr. Raymundo Joven, Philippine Electric Margate, Jr.; FPI Secretary General and Atty. Danton Lucenario, of the PSRMA Wiring Manufacturers Association (PEWMA); Wellington Tong, during the launching of info-campaign of product standards Philippine Steel Rolling Mills Association (PSRMA); and Ms. Victoria The private and government sectors have banded together to launch Padilla-Unson, Philippine Product Standards Quality Foundation an aggressive education campaign on mandatory product standards. (PPSQF). FPI President Jesus L. Arranza announced during the 2nd Joint Meeting held recently in Makati City in order to tap the vast manpower resources Dir. Jesus L. Motoomull, Bureau of Product Standards (DTI-BPS), of the local government units, educate, and enlist them, to augment Ms. Sonia T. Valdeavilla, Construction Industry Authority of the the meager resources of the Bureau of Product Standards. Philippines (DTI-CIAP), Col. Carlito Romeo and Engr. Mariano Joseph, The idea of tapping the Municipal and City building permit officials Bureau of Fire Protection (DILG-BFP), represented the was conceived by Mr. Jesus L. Arranza and this was presented to government.

Declared as “other bars and rods” the shipment Misdeclared is subject to an import duty of one percent (1%), while the duty on deformed bar is seven percent shipment of steel (7%).

bars discovered The international price of scrap metal is currently placed at about $280 per MT, and the price of The cooperation between the Bureau of Customs steel billets coming from China is $450. and the Federation of Philippine Industries in the fight to stamp outright and technical smuggling is A PISI officer asked, “How can the price of bars be paying off. The BoC-FPI teamwork resulted in the at this ridiculous price of $260 CNF when steel bars discovery of a shipment of 3,000 metric tons (MT) are produced from steel billets?” Based on the Steel bars declared as “other bars and rods”. declared value and weight, the consignee paid P5,794,304. After an informant tipped off the Philippine Iron and Steel Institute (PISI) about the “hot cargo” If the price of the bars is the same as that of FPl alerted the BoC through Jake Paguntalan, billets at $450 per MT, the total duties and VAT Director of the Customs Intelligence and payment due the government should be Investigation Service (CIIS), on the shipment. PI5,197,498.”

BoC records show that of 2,406 bundles of steel The local price of steel bars in northern China, bars declared as “other bars and rods” weighing where Tianjin (where the goods originated) is 3,009 MT, 1,141 bundles had already been spirited located, is also in the range of $400 (or FOB out of the Customs zone. FPl President Jesus equivalent). With inland and ocean freight, the Arranza said that an investigation disclosed that 34 CNF price should not be far from $450 per MT, Top photo: Custom Commissioner Napoleon L. Morales trucks were involved in the hauling of “other bars Arranza Said. is seen conferring with FPI President Jesus L. Arranza and rods” which were actually deformed steel bars. on the seized steel bars. Far right, Atty. Danton Lucenario Mr. Arranza said the FPl anti-smuggling committee The BoC is investigating the case to identify the and FPI Secretary General, Atty. Rufino M. Margate, believes that technical smuggling through people responsible for allowing the release of Jr.; Photo below is DTI-BPS Director Jesus L. Motoomull undervaluation and misclassification is evident. the goods. with the seized steel bars from a warehouse in Valenzuela City.