Embed Size (px)
DESCRIPTION
Smuggling of Selected Agricultural Commodities in the Philippines
Citation preview
SUMMARY
T his paper was prepared by the Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA) as a milestone deliverable of the project funded by the Department of Agriculture Bureau of Agricultural Research (DA-BAR) titled, An
Assessment of Smuggling on Selected Agricultural Commodities in the Philippines.1
Through Focus Group Discussions (FGDs) and Key Informant Interviews (KIIs) done in various institutions (in the Philippines and its neighboring countries), the authors examined
The nature and the extent of smuggling in the country;The effectiveness of existing policies to address smuggling;The channels of smuggling in selected agricultural commodities; andPolicy implications to mitigate the problem of smuggling.
Policies and Procedures on ImportsTariff Rates Extent of SmugglingValue of SmugglingEffectiveness of Anti-Smuggling Policies
commodities in the Philippines.
This paper includes an introduction which provides the context of smuggling in the
for operational policies and legislative actions.2
PHOT
O BY
TAUF
AN W
IJAYA
SMUGGLING IN THE PHILIPPINES
Because smuggling affects government revenues, the competitive advantage of
domestic industries, and employ-ment, among many, examining its nature, extent, and implica-tions should be top priority.
3
PHOT
O BY
GEM
URD
ANET
A
“technical smuggling.”“direct smuggling”
NATURE OF TECHNICAL SMUGGLING
4
PHOT
O BY
IQBA
L GUN
ADHA
RMA
5
Technical smuggling involves the use of legal trade channels in bringing the
goods into the country, but several forms of manipulations are employed to evade paying correct duties. Some forms of manipulation include misdeclaration, undervaluation,
and fake delivery documentation.
PHOT
O BY
VERN
A LU
CIA SA
RRAG
A
1. Policies and Procedures on Imports
6
SMUGGLING: MAIN ISSUES
PHOT
O BY
NYO
MAN
HARY
ADI W
IJAYA
Year Rice (milled)
Sugar Beef (meat) (dry) (meat) (meat)
1986 1,195 85 70 0 83 44 0 01987 1,264 2,975 24 0 344 1 0 21988 30,988 22,872 175 0 157 18 1 101989 71,854 723 84 0 110 231 60 91990 46,826 120 3,757 17 422 36 137 31991 91,333 1,873 5,634 324 302 179 1 91992 456 6,445 10,959 181 85 22 11 01993 26,005 2,287 18,125 30 12 26 6 11994 146 5,114 30,659 849 753 339 7 01995 25,068 105,340 34,175 665 620 345 14 01996 571,417 49,957 4,741 181 1,692 2,785 24 121997 271,172 42,489 18,493 165 2,716 679 42 851998 565,418 33,468 12,759 8,640 2,058 2,608 253 31999 554,133 110,768 15,039 11,175 7,885 5,822 2 232000 41,647 81,727 18,838 7,411 8,199 1,620 20 492001 256,657 8,893 1,146 15,492 6,914 3,388 30 442002 207,600 45,915 9,956 5,430 12,049 3,889 4,114 2,3652003 110,268 78,983 10,395 8,883 10,043 21,516 1,437 9652004 410,078 91,979 18,859 6,150 11,151 4,001 34 4122005 698,575 70,934 20,454 18,673 14,838 5,347 55 152006 59,156 64,623 12,722 64,622 14,047 1,335 43 572007 136,232 165,278 14,238 1,371 19,945 13,488 1,165 862008 46,039 191,655 14,096 54,810 19,344 15,416 1,716 332009 126,019 107,922 1,425 3,906 37,918 23,030 5,384 885Total 4,349,546 1,292,425 276,823 208,975 171,687 106,165 14,556 5,068
Average 181,231 53,851 11,534 8,707 7,154 4,424 607 211
Table 1. Extent of technical smuggling by commodities, in the Philippines (1996-2006)
Note: All commodities are in metric tons, except for rice which is in thousand metric tons.7
2. Tariff Rates
3. Extent of Smuggling
Rice
Sugar
8
Beef
Chicken Meat
Pork
Onion
Ginger
Carrot
9
PHOT
O BY
JOSE
PH P
AGTA
NANA
N
4. Value of Smuggling 5. Effectiveness of Anti-Smuggling Policies
Year Rice (milled)
Sugar Beef (meat) (dry) (meat) (meat)
1986 475 193 23 108 58 0 0 01987 203 25 171 88 15 0 0 31988 4,256 311 5,219 140 3 0 3 71989 37,179 87 240 493 508 0 19 141990 13,959 5,190 283 472 590 24 47 91991 15,098 7,609 1,344 277 473 680 2 31992 110 14,405 1,093 202 261 355 14 01993 1,042 25,873 725 40 352 499 6 11994 309 40,183 287 903 484 1,337 68 01995 13,490 47,384 28,931 535 409 1,371 24 01996 216,317 16,230 15,872 2,859 2,058 1,632 47 01997 51,449 36,487 10,729 3,696 644 1,750 60 631998 259,350 23,228 7,116 2,081 1,781 668 36 261999 50,347 16,392 46,338 2,267 2,861 12 133 132000 5,686 28,884 944 4,310 8,269 535 79 172001 4,744 8,374 43,791 7,159 4,290 453 67 142002 46,694 16,013 16,230 9,937 2,556 880 905 2,8692003 27,803 9,958 17,896 7,510 11,863 652 181 2,0462004 38,137 16,305 22,791 14,193 2,514 815 26 7142005 43,263 7,452 20,478 13,821 4,317 518 71 162006 7,859 2,515 21,741 12,333 530 4,883 10 582007 34,359 18,806 55,323 26,345 19,312 3,626 245 262008 290,543 62,819 68,160 70,979 24,811 1,049 963 142009 33,766 43,485 43,074 78,808 28,499 6,072 4,804 557Total 1,196,438 448,208 428,799 259,556 117,458 27,811 7,810 6,470
Average 49,852 18,675 17,867 10,815 4,894 1,159 325 270
Table 2. Estimates of the value of technical smuggling of selected Philippine agricultural commodities, 1986-2009, in USD 1,000
Source: FAOSTAT and UN COMTRADE
10
POLICIES AND ACTIONS IN MITIGATING SMUGGLING
Recommendations for Operational Policies
11
commodities in the Philippines. To address these issues, policy changes are in order. The policy reforms require legislative actions, those that would simply require administrative order at the
PHOT
O BY
MICH
AEL S
ANCH
EZ
12
More stringent accreditation of importers.
Operationalization and full implementation of the SWS.
Creating of an oversight function in the
Rules of origin and international transhipment tracking.
OPERATIONAL POLICIES
accredited agency from the country of origin.More stringent accreditation of importers.Other regulatory agencies facilitating of real-time access to cargo manifest by other regulatory agencies.
implementation of the SWS.
protocol. Creating of an oversight function in the risk management system.Rules of origin and international transhipment tracking.Shared responsibility and accountability in post-border inspection.Proof on errors to the manifest should be made as an importers’ burden. Regular price monitoring should be performed. Stronger monitoring at customs bonded manufacturing warehouses.
LEGISLATIVE ACTIONS
revenue functions
Imposition of stiff penalties for the crime of smugglingFood safety, revenue and trade coordinating council
13
manufacturing warehouses.
Recommendations for Legislative Actions
functions.
One of the main functions of the Bureau of Customs (BOC) is “...to supervise
and control all import and export cargoes landed or stored in piers, airports and terminal facilities, including container yards and freight stations, for the protection of government revenue...”.
14
Harmonization of tariff rates.
Imposition of stiff penalties for the crime of smuggling.
REFERENCESJournal of Philippine Development
Final Report. Manila, Philippines.
15
PHOT
O BY
MAS
YUDI
FIRM
ANSY
AH
The research team was composed of Dr. Prudenciano U. Gordoncillo (Team Leader), Dr. Cesar B. Quicoy (Assistant Team Leader), Prof. Julieta A. Delos Reyes (Field Coordinator), and Dr. Arvin B. Vista (Database Administrator) from the Department of Agricultural Economics, College of Economics and Management, University of the Philippines Los Baños.
Department of Agriculture - Bureau of Agricultural Research (DA-BAR)RDMIC Building, Visayas Ave. cor. Elliptical Road, Diliman
Quezon City, Philippines 1104
Phone: +63 2 928-8624 / +63 2 928-8505
Fax: +63 2 927-5691
Website: http://www.bar.gov.ph/
LAYOUT BY MARK VINCENT P. ARANASCOVER PHOTO BY ADY SURYADI
Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA)SEARCA, College, Los Baños
Laguna 4031 Philippines
Tel.: (+63 49) 536 2361; 536 2363; 536 2365 to 67; 536 2290 ext 161/406
Fax: (+63 49) 536 7097; 536 2283Email: [email protected]; [email protected]: www.searca.org; www.climatechange.searca.org
