LEGAL-ADMINISTRATIVE INCOHERENCE AND SMUGGLING IN THE PHILIPPINES:THE STATE OF FIREWORKS INDUSTRY IN BOCAUE, BULACAN1

Doce, Brian U.Capio, Ma. Kristel G.

Cabalang, Alyssa FayeLeonardo, Mary Louise

Soriano, JaysonCristobal, Ayla

Esteban, Francis M.

ABSTRACT

Transnational crime is one of the concerns regional organizations are currently answering. In relation, with the increasing number of smuggled products entering domestic markets of developing countries, domestic industries are threatened and endangered. The case of the fireworks industry in Bocaue, Bulacan in the Philippines is not an exception to this reality. This study proves that smuggling does not only affect the local industry but also the work ethic of local craftsmen. Through interviews of local officials, qualitative surveys among licensed storeowners, purposive inquiries among unregistered retailers, and ocular visitations in Bocaue, Bulacan, the study discovered the following realities. First, aside from the corruption in the national level and weakness of implementation, there is an incoherence of national and local policies written to address the issue. Second, the efforts of the local government of Bocaue to address the issue is deemed futile and useless because the Bureau of Customs had already legitimized the so-called “smuggled” products by giving them permits and licenses. Finally, it is discovered that the entry of these illegal products results to lower demands on locally made firecrackers which translates to lower income on local manufacturers, and diminishing essence of craftsmanship. This study recommends that dependence on legal and institutional measures will not solve the problem but an attitude change on consumers and retailers are necessary in order for them to realize the future negative deficits they are going to face if this trend will pursue.

Keywords: Smuggling, Firecracker Industry, Bocaue, Philippines, ASEAN

INTRODUCTION

1 This research is a case study submitted as a final requirement to Asst. Prof. Dennis Coronacion who is our professor in the course, International Political Economy.

The use of fireworks and pyrotechnic products has been a part of the culture and tradition of countries around the world. For the past decades, alongside with the increasing number of pyrotechnic buyers, the world saw the establishment and continuous growth of fireworks industries across the globe. Manufacturers, dealers, retailers, exporters and importers significantly increased through the years. The fireworks industry has also been one of the major import products of nations, most significantly in China.

In the Philippines, the local fireworks industry particularly in Bocaue, Bulacan, one of the most strongest cultural industries in the country, is being threatened by an international political- economic phenomenon called smuggling which is the illegal transportation of objects or people across international border, in violation of applicable laws or other regulations of the states. The Republic Act 7183 prohibits the selling of foreign- made/ imported finished products in the Philippine local market. However, in spite of this legislation, business owners still continue to sell imported fireworks which can be considered as smuggled products.

This case study has the main objective of identifying the effects and impacts of smuggling as an international phenomenon and as a transnational crime, to the local fireworks industry of Bocaue, Bulacan. In relation, this study will also provide the dynamics on how imported products were being allowed to enter the local industry of Bocaue amidst legal prohibitions.

SMUGGLING AS TRANSNATIONAL CRIME

As defined by the Section 3601 of the Tarriff and Customs Code of the Philippines, smuggling is “the act of importing or exporting gods secretly without payment of legal duty or violation of law.” Concisely, smuggling is an illegal method of conducting business. The customs processing of these goods is then either short-circuited or manipulated to enable importer to avoid payment of the correct duties or to allow the goods to enter the country even in violation of law.

Smuggling, being the practice of using illegal trade channels or false foreign trade declarations for the objective of evading the payment of duties and taxes or the proper entry of products given that there is a violation of law, inevitably instigates distortions in international trade data and in policies subsequently formulated from it (Alano, Jr., 1984). Given the fact that it deprives government revenues from uncollected taxes and customs duties, it also affects the promotion of the local industries and the local economy per se. Smuggling has notably benefited from weak governance and chronic political instability. Through the nature and the effects of smuggling, it can be said that it obliterates the local economy and exacerbates poverty in the country as manifested by the dissolution or collapse of local industries, decline in agricultural production, uncompetitive local products and loss of jobs, unfair competition, and risks in consumer welfare.

BRIEF HISTORY OF FIREWORKS INDUSTRY IN BOCAUE

The pyrotechnics industry in the Philippines traces its roots during the Spanish era when Valentin Sta. Ana of Barangay Balasing, Sta. Maria, Bulacan started fireworks-making for Fiesta celebrations and public festivities. Valentin later on passed his skills in fireworks making to his children, Valerio and Fernando. In 1938, the Sta. Ana brothers opened the Santa Ana Fireworks Factory in Balasing Santa Maria, Bulacan. After the war, the company broke up, and Fernando

put up his own company, Victory Fireworks, which continue to manufacture fireworks to this day. Mr. Fernando Sta. Ana is considered as the country's Father of Modern Fireworks and Pyrotechnics. Early fireworks factory owned by the Sta. Anas includes Universal Fireworks. Their workers also learned the technology fireworks making that gave birth to the mushrooming of factories in Santa Maria, Bocaue, Baliuag, Norzagaray and Angat. Others manufacturers moved to the provinces of Rizal and Cavite to cater to clients from the south (Provincial Government of Bulacan, 2007).

The advent of Martial Law (1972-1986) led to the eventual banning and total illegalization of the manufacture and sale of firecrackers. The Marcos regime saw the need to control the fireworks industry due to the fear of using these technologies in rebellious activities and insurgencies against the government. Since tradition and culture is said to be stronger than laws, market demand forced many former factory workers to manufacture their own firecrackers and pyrotechnic with the backing of corrupt law enforcers and politicians. Alongside with this trend, are a growing number of explosions and accidents caused by the fireworks technology which affected the lives of the residents living within the towns of Bulacan (Provincial Government of Bulacan, 2007).

The People Power Revolution of 1986 and the assumption of President Corazon Aquino gave a new hope to the campaign for legalization and resulted in the enactment of RA 7183 on January 30, 1992 through the sponsorship of Congressman Vicente Rivera Jr. of Bulacan. The Republict Act 7183 is an act regulating the sale, distribution and use of firecrackers and pyrotechnic devices and also known as Firecrackers Law (Provincial Government of Bulacan, 2007).

SMUGGLED FIRECRACKERS AND PHILIPPINE LAWS

The Philippines has three related laws in terms of the issue of firecracker industry in Bocaue, namely, the Tariff and Customs Code, R.A. No. 2338 and R.A. No. 07183. The first two is related to the presence of smuggling in the Philippines. Section 3601 of the Tariff and Customs Code of the Philippines defines a smuggler as “any person who shall fraudulently import or bring into the Philippines, or assist in so doing, any article, contrary to law, or shall receive, conceal, buy, sell, or in any manner facilitate the transportation, concealment, or sale of such article after importation, knowing the same to have been imported contrary to law,” while Section 1 of the Republic Act No. 2338 grants the informer of any act of smuggling “shall be rewarded a portion of the revenues, surcharges, and fees collected.” On the other hand, Republic Act No. 07183 devises regulation on the sale, distribution and manufacturing of firecrackers and pyrotechnic technologies in the Philippines.

Specifically, Republic Act No. 7183, also known as the “Firecracker Law”, regulates the sale, manufacture, distribution and use of firecrackers and pyrotechnic devices in the Philippines. Due to incidents of firecracker related injuries and proliferation of an underground industry, the national government responded with this law to closely regulate the fireworks industry in the Philippines. The Act indicates which type of products are allowed and prohibited, which the PNP Director-General determines. Moreover, this Act prohibits imported chemicals and explosive ingredients for firecrackers and pyrotechnic devices. The prohibition was a protectionist effort of

the government to secure and develop the newly legalized industry from competition with other foreign fireworks industry.

The act also requires stringent licensing, permit requirements and fees, as well as record keeping and labeling of products with the name of the company, their address, and instructions on how to use the product in English and Filipino. Those who want to become dealers should be a Filipino citizen and registered to the Bureau of Commerce – Department of Trade and Industry or Securities Exchange Commission, owning 100% of the capitalization. The strict regulation aims to ensure that the industry promote safety measures and certify that the industry will be run by Filipinos only.

The Philippine National Police (PNP) is primarily responsible for the administration and enforcement of this Act. Also, the PNP should cooperate with the local industry through consultations and public hearings in promulgating the rules and regulations they deem necessary for the furtherance of public safety and order. Penalties are provided for those who violate the law and repealing clause for previous laws incoherent with the Act (See Appendix I).

RESEARCH PROBLEM

Through a qualitative research design in interpreting and analyzing gathered data from interviews, document examination and ocular visits, this study primarily aims to answer the questions:

1. How does the government implement Republic Act 7183 or the Firecracker Law?

2. What are the measure of the Local Government of Bocaue regarding the fireworks industry and the implementation of RA 7183?

3. What are the issues affecting the local fireworks industry of Boacaue and the implementation of RA 7183?

4. How do smuggled products enter the domestic market?

5. How does smuggling, as an international political and economic phenomenon, affect the local fireworks industry of Bocaue Bulacan?

METHODOLOGY

This study utilized qualitative approach in order to answer the research. Narrative design is employed in the presentation of data since an analysis of interviews and statements are used to answer the questions. Due to the sensitivity of the topic, the researchers’ reach and access to particular data and information are limited.

Research Design

There are three phases of data analysis conducted in this study, namely, documentary analysis, interviews and ocular visitation. Documentary analysis procedure is used in order to analyze the legislations addressing the issue of smuggling in Bocaue. This includes national and local

policies combatting the entrance of smuggled goods in the Philippines. Documents such as news articles and books were also analyzed. Moreover, interviews were conducted to describe whether the said policies were effectively implemented among firecracker sellers in Bocaue. Lastly, ocular visitation is conducted in order for the researchers to document the daily transactions in the fireworks industry in Bocaue and to confirm the interview claims by doing ambush inquiries among consumers and retailers.

Research Data

The primary sources of data digested in this study includes copies national and local policies related to smuggling and regulation of selling fireworks in Bocaue and interviews from selected store-owners and officials of the municipal hall of Bocaue.

On the other hand, secondary sources include the number of stores selling firecrackers in Bocause, and their respective amount of license fee being paid to the municipal government. The study also utilized data retrieved from newspapers and online articles as seemed necessary and pertinent to the subject matter.

Research Procedure

Ocular visitation is the first phase conducted in this study. The researchers of the study went to Bocaue and observed how stores package their products to consumers. They also went to the municipal hall to retrieve necessary data that will be used in this study.

Consequently, in-depth ambushed interviews were also performed simultaneously with the ocular visitation. The researchers asked store owners, local government officials and employees and consumers regarding the smuggling happening in the area. Some statements were not recorded in the audio because of the sensitivity and confidentiality of the topic.

Lastly, documents regarding the fireworks industry were analyzed, this include: legislations, ordinances, news articles, written reports and other online materials.

RESULTS AND DISCUSSION

This section is divided into five subtopics: the implementation of Republic Act 7183 or the Firecracker Law, the measures employed by the Municipality of Bocaue regarding the fireworks industry, the issues affecting the local fireworks industry of Bocaue, Bulacan, and the effects of smuggling in the local fireworks industry of Bocaue.

I. Implementation of Republic Act 7183 or the Firecracker Law

The Republic Act 7183 or the Firecracker Law of the Philippines primarily aims to regulate the sale, manufacture, distribution and use of firecrackers and pyrotechnic devices in the Philippines. The implementation of Firecracker Law is primarily vested on the Philippine National Police (PNP). There are various implementing strategies and mechanisms employed by various institutions:

A. Focus on Protection and Safety Measures

The Philippine National Police (PNP) together with the Bureau of Fire Protection (BFP) and other government institutions organize capacity building seminars and conferences regarding fireworks protection and safety measures. Last July 2014, the PNP through the Firearms and Explosives Office (FEO) of the Civil Society Group (CSG) conducted a Firecracker Safety Seminar in Batangas. The seminar aims to increase the level of awareness of fireworks industry stakeholders and to stress the importance of safety in using fireworks. Among the participants are policemen, fire and local government officials, and fireworks industry stakeholders (PTV News, 2014) The agencies also releases official lists of fireworks, firecrackers or pyrotechnic products that are illegal and banned by the government this include dangerous firecrackers such as “piccolo” and those that cause massive explosion like “goodbye Philippines”. On the other hand, the Department of Health also releases safety campaigns against the use of firecrackers to prevent injuries and casualties. Last 2014, DOH released their advocacy statement which is: “Mahalaga ang Buhay. Iwasan ang Paputok” (Geronimo, 2014)

B. Regulating Manufacturers and Dealers by Issuance of Permits and Licenses

The national government regulates the manufacturers, dealers and retailers of fireworks by limiting them through issuing permits and licenses to businesses who complied with the necessary requirements. This is primarily under the jurisdiction of the Department of Trade and Industry (DTI). They issue product standard (PS) marks and licenses to legal manufacturers (Balabo, 2013). These mechanisms are also implemented in the local level by issuing ordinances to regulate the fireworks industry in the area under the jurisdiction of the local government unit.

II. Measures Employed by the Municipality of Bocaue regarding the Fireworks Industry and the Implementation of RA 7183

The Municipality of Bocaue formulated only three ordinances related to their local firecracker industry. The earliest, Ordinance No. 94-02-075, was implemented in 1994 which basically notes storeowners of their license and permit fees. Meanwhile, the succeeding local legislation, Ordinance No. 08-007 imposes the rule of banning cigarette smoking within the ten meter radius inside the territory of Bocaue. This rule was established in 2008 which is primarily concerned on safety. Consequently, the previous ordinance was updated the following year wherein testing the quality of firecrackers are no longer allowed in the municipality aside from the no smoking policy.

III. Issues Affecting the Local Fireworks Industry of Bocaue, Bulacan

The municipality of Bocaue in Bulacan is known for its firework industry. However, contrary to popular belief, the industry is not doing well and may soon be extinct. Issues affecting the industry include weak implementation of security measures, difficulty in regulation by the local government, corruption of involved agencies, and production of low quality products. These problems are all deemed to converge and are interconnected.

A. Weak Implementation of Security Measures

There is a weak implementation of security measures as provided for by the Philippine National Police, who is the administrative and enforcing agency to make sure that the existing firecracker law is implemented. Weak implementation of the security measures leave the industry unregulated. The fireworks industry is a very dangerous trade since it involves chemicals and explosives, it is important to erect safety measures and put standards so that the industry could be regulated and could promote public safety. Among the safety measures of the Philippines relating to fireworks are licensing and prohibition of imported fireworks. The former is an internal safety measure for the industry, while the latter is an external safety measure.

Licensing is believed to be a burden for small-scale firework manufacturers because the price is too expensive and there are several requirements. It is estimated that there are more unregistered small time enterprises that manufactures in their own backyard than those who have a license and permit to operate in Bocaue. This leads to a phenomenon where consumers are endangered by low quality products, as well as firework-makers because of non-compliance to standards on how to operate a firework enterprise. The problem with these dealers and manufacturers is that they usually apply for their permits during the months of November and December. Most establishments of the fireworks industry in the province lack the official permit issued by the Bureau of Fire and Protection which is a prerequisite before the PNP can issue to the manufacturers and dealers their licenses. In addition, the Bureau of Fire Protection is the agency that gives seminars and checks the facilities of an enterprise if it is fit for operation.

R.A. 7183 prohibits imported fireworks to protect and promote the local industry. Efforts to stop the influx of smuggled fireworks in the Philippines have failed. There are several reports that have reached the Bulacan Governor that smuggled imported pyrotechnic products have already penetrated the local fireworks industry in Bulacan and that its imported labels are being substituted with “Made in Bulacan, Philippines.” The most vocal and active organization in bringing awareness about the issue of smuggled fireworks is the PPMDAI (Philippine Pyrotechnic Manufacturers and Dealers Association, Inc.). They voice out the existence of the rampant practice of repackaging imported products and label them as “Made in the Philippines” to prevent confiscation of the illegal fireworks that they are selling.

B. Corruption of Involved Agencies

It cannot be denied that corruption is present in every industry there is and it is inevitable. According to the Official Gazette of the Philippines, the Bureau of Customs (BOC) is an attached agency of the Department of Finance. It is charged with assessing and collecting customs revenues, facilitating trade through an efficient and effective customs management system, and most importantly, curbing illicit trade and all forms of customs fraud. If these are the stated functions of the agency, it is a big question why there is still a rampant selling of illegal imported fireworks in the country. According to an interview with one of the Councilors of Bocaue, Bulacan, the selling of illegal imported fireworks are still present in the area and is causing the demise of the local fireworks industry of the country. One of the main probable reason for this is that the import of illegal pyrotechnics is not curbed and is easily given a permit by the Customs--since it is the agency responsible for all the trades and imports of the country. This problem of corruption has been plaguing the Bureau of Customs.

C. Production of Low-quality Products

Since the authorization of permits and licenses is deemed to be a burden for the small-scale firework manufacturers and dealers--providing too many requirements and the charge for the application of permit is expensive--there is a widespread existence of several unregistered small time enterprises, causing the production of low quality products. Most of these unregistered enterprises only operate the production of fireworks in the backyard of their homes, jeopardizing the safety of the community and the guarantee of creating good quality products.

Furthermore, most accidents and explosions occurring in the area transpires in the makeshift shops and clandestine factories. Some of which are even located in populated areas of the province. There have also been constituents who are investing in pyrotechnics business, however, as already stated, some of them manufacture the firecrackers right in their own homes which was one of the major causes of firework-related explosions and accidents in the province.

IV. Entry of Smuggled Fireworks to the Domestic Market (Imported vs. Local)

The presence of smuggled products are due to the problems and issues present in the local fireworks industry since there is convergence of all the issues such as weak implementation of safety measures, corruption of involved agencies, low quality products, and partially to the ignorance of the law on both the seller and consumer’s part. First, imported fireworks are prohibited according the Firecrackers Law; however, its implementation is poor and inefficient. Moreover, regulation of the local industry is difficult which is a reason why there is a lower quality of production present. The entry of smuggled fireworks are due to high demand for imported products and the profitability of the illicit trade on the part of the sellers. Consumers clamor for imported goods since they believe that it is of better quality than the locally made ones. On the part of the sellers, manufacturing became a burden and reselling imported fireworks are much more profitable.

On the process of fireworks smuggling, the activity starts with the Bureau of Customs which is the agency handling the assessment of imported goods for tax, fees, and other regulations deemed necessary. However, due to corruption, these imported goods are given legal papers to enter the Philippines. The imported goods are then distributed to different parts of the country, but mostly in Bocaue. By that time, the shop owners and factory workers engage in massive repackaging of imported goods and change the labelling of the products as “Made in the Philippines” so as to prevent the crackdown from the Philippine National Police and other regulatory agency in the fireworks industry. Even the city council admits that there is an illegal trade happening but cannot regulate due to the non-existence of evidence that these fireworks are imported when they are already given legal papers and has a different packaging. In sum, the sellers, consumers, local government, and national agencies are all responsible for the proliferation and entrance of the smuggled fireworks in the Philippines.

V. Effects of Smuggling in the Local Fireworks Industry of Bocaue, Bulacan

Primarily, it is important to notice that smuggling, in its strictest sense is a global political economic phenomenon. Much more, it is claimed by some scholars as an activity that utilizes no domestic resources (Lovely & Nelson, 1995). The smuggling of illegal fireworks affect the local industry of pyrotechnic in Bocaue, Bulacan in two significant and alarming ways. First, it competes with the local industry and creates an influx of imported fireworks. According to a member of the municipal council, Chinese made firecrackers are more favorable by consumers because it is cheaper, and creates a much louder explosion. This is very alarming since there is a Philippine statute, Republic Act 7183 that prohibits the importation of pyrotechnics to protect the local industry in the country. As an effect, instead of benefitting from all the revenues of the local industry, the local manufacturers are in a burden to compete with the imported products and to keep up with their livelihood.

Second, smuggled fireworks affect the local industry of fireworks in Bocaue as it poses a threat to the essence of craftsmanship in the locality. Looking into a brief history of the municipality of Bocaue, it is said that the craft of making pyrotechnics traces long time ago when a citizen of the municipality during the Spanish Era learned how to mix black powder with other chemicals to produce simple pyrotechnics. This means that the industry has a long history, and manifests the culture and heritage of the people of Bocaue, thus making is sufficient to call a craft as according to UNESCO, crafts are “products made by hand, or with the help of simple tools, and reflect the creativity and the heritage of the craftsperson (Chelladurai, Nunes, & Erande, 2007, p. 2).” According to a municipal councilor, since the arrival of smuggled fireworks in the industry, local manufacturers are not only threatened with competition, but a vast number of them opted to drop the traditional way of making fireworks and decided to merely be a retailer of imported ones. This reality is very detrimental since it poses a threat of extinction to the age long craftsmanship of fireworks in Bocaue and simply reducing it to a retailing center. In addition is the fact that many craftsmen would lose their job. This is the reality that is happening in the municipality of Bocaue, Bulacan which was once known as the Fireworks Capital of the Philippines. If RA 7183 would not be implemented with an iron hand, then Bocaue would simply serve as a retailer of smuggled fireworks. Figure 1 summarizes the synthesis of the claims of government officials and storeowners.

Fig. 1. Framework on the Effects of Smuggling in the Local Industry of Bocaue, Bulacan

CONCLUSION

The local industry of pyrotechnics in Bocaue, Bulacan is slowly dying due to the entrance of smuggled or imported finished firework products. There is no proper enforcement of the RA 7183 which aims to protect the local industry of fireworks from foreign competitors. The law explicitly states that imported finished products of fireworks are prohibited but based on the research; most stores in Bocaue sell imported finished products from China. The locals only change the wrapping and the product is already ready for selling.

Moreover, the Municipality revealed that the law is not carried out because most of the stores selling imported finished product have all the necessary requirements and permit to operate. This makes the Municipality weak in terms of seizing those people who violate the law for in the first place they have been given permit by the National Government through the Bureau of Customs (BOC). The ordinances that the Municipal Council then creates only aim to regulate whether or not the firework stores have permit, the necessary requirements to operate and the obedience to safety guidelines. They argued that they are not empowered to get hold of these law violators for they already gained permit from the BOC. The Bureau is the one responsible for the products sold by these violators for it is the lead agency which addresses the prevention and suppression of smuggling and other frauds upon the customs. Therefore, if in the customs, there were spotted vessels or vans containing imported finished product of fireworks, the agency then should have confiscated them and returned them back to its place of origin. With regard to what is happening in Bulacan, there can be seen a lack of proper inspection and regulation among BOC making them fail in complying with their responsibility and function. Also, the implementing agency for the capture of violators who sell smuggled fireworks, the Philippine National Police (PNP),

could not perform its task because those who sell imported fireworks have the necessary requirements and permit from the National Government to operate.

The law’s implementation is ineffective for the National Government has allowed the entrance of smuggled goods even though there’s an explicit command that these are prohibited. BOC has allowed these smuggled goods to exist primarily because of the corruption on the officials whose vested interests are prioritized instead of promoting the local industry in Bocaue.

Thus, the local industry in Bocaue, Bulacan is now deteriorating due to the presence of smuggled goods. Moreover, the local industry could not be supported by the Municipality due to factors such as the vested interests of the citizens themselves. Some of the citizens in Bocaue, Bulacan try to make fireworks on their own without the proper application for permit to operate. The Municipality has urged them to merge (about 10 people) their resources and be able to apply for a permit so they could produce and manufacture fireworks. But the people are stubborn and wanted to make fireworks of their own. Thus, the local industry is furthermore greatly hampered due to this factor for the people does not follow necessary rules and regulation which is very much like what the BOC has been doing in its permission on smuggled goods to enter the country. The two figures presented below summarizes the incoherence of policies regarding smuggling in the Philippines, and the process on how Chinese firecrackers entered Bocaue local industry through legal means, respectively.

Figure 2 shows the relationship between the international and local legislations pertaining to smuggling. In terms of international efforts to fights smuggling as an international crime, the Association of Southeast Asian Nations (ASEAN) has three related declarations as enclosed in the blue circle. In respond to the call of this regional organization, the Philippine state legislated three related laws which are located on the yellow circle. Republic Act 7183 is the only specific law which targets fireworks smuggling. However, the separate green circle are the local laws regarding the issue. These ordinances are related to R.A. No. 7183 only in terms of sale, distribution and manufacturing. These ordinances possess no reference in checking whether the retailed firecrackers are smuggled or not.

Fig. 2. A Diagram on the Coherence of National and Local Laws of the Philippines in terms of smuggling

On the other hand, Figure 3 summarizes the dynamics on how smuggled products are able to penetrate the local market. Basing on the case of Bocaue, Chinese made firecrackers are accepted by the Bureau of Customs dressing them with legality by authorization papers. As they commenced on penetrating the local market, the Municipal Government of Bocaue, in faithful adherence to the law, blocks their entry; however, the local government’s effort is refuted by the confirmation of the Bureau. Hence, the local government of Bocaue has no choice but to submit on the order of the Bureau of Customs and allow the presence of smuggled goods in their local industry.

Fig. 3. The process how smuggled firecrackers from China enters the local market of

BocaueRECOMMENDATIONS

Since the problem is seen in the National Government, particularly the Bureau of Customs, the change must be primarily focused on changing the attitude and culture of people working within the institution. The corruption arising from the entrance of smuggled goods is when government officials receive kickbacks from those countries who they have allowed to import smuggled products. Furthermore it is seen that there is an explicit neglect of the law even though it has commanded that imported finished products are not allowed. It is therefore needed that a cultural revolution occurs among the people in the agency in order for them to stop the tradition of corruption and instead value enforcing laws that will benefit local industries. More importantly, they must look into the effects of their activities because one example was the deterioration of local fireworks industry in Bocaue, Bulacan. The consequence of their actions greatly affected the local industry in which if promoted and encouraged correctly by the National Government and eventually with the aid of the Provincial and Municipal Government, the Philippines could be competitive in this sector.

For the locals of Bocaue, it important that there be information campaign conducted through seminars to make them aware of the negative effects of patronizing smuggled fireworks. They must realize that the positive effects of smuggling in their profit are not a long term gain but they will manifest more deficits in the future.

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