ANTI-SMUGGLING ADVOCATE. Federation of Philippine Industries chairperson Jesus Arranza (center) is seen in this undated photo receiving an honorary badge from the U.S. Department of Homeland Security for his efforts against smuggling. The business leader on Tuesday (July 25, 2023) lauded President Ferdinand R. Marcos Jr. for vowing to stamp out smuggling during his latest State of the Nation Address. (Photo from JLA Facebook account)
MANILA – The leadership of the Federation of Philippine Industries (FPI) has lauded President Ferdinand R. Marcos Jr. for spotlighting the country’s smuggling problem and vowing to file charges against smugglers during his second State-of-the-Nation Address (SONA).
FPI chairperson Jesus Arranza on Tuesday told the Philippine News Agency that Marcos is the only president in recent memory to highlight the economic damage caused by unmitigated smuggling during his SONA, and who has categorically committed to pursue smugglers.
“We are happy, it is the right move. No matter how hard we try to entice investments, as long as there are holes (smuggling) that remain unplugged, the government and businesses will keep on losing money,” he said.
The business leader pointed out recent studies which indicate that, every year, as much as PHP2.3 trillion worth of goods enter the country through outright smuggling or technical smuggling, which translates to an estimated PHP250 billion in revenue losses to the government.
Apart from depriving the state of much-needed income, he said rampant smuggling also floods the country with cheap and often sub-standard goods, which directly compete with local manufacturers.
FPI is touted as the voice of the Philippine manufacturing sector, whose membership includes food and beverage, automotive, textiles, steel, construction materials, and energy companies, among others.
Arranza cited as an example the decline of the local tire manufacturing industry.
“Before (1970s to the early 2000s) we had as many as six tire manufacturers operating here. But because of smuggled tires from China, which can be sold cheap because they (importers) don’t pay taxes, five of our companies closed down. They transferred their operations abroad, and many (Filipinos) lost their jobs” he lamented.
He added that the lone tire manufacturer still operating in the Philippines had to transfer to an eco-zone to enjoy government perks to remain viable.
Arranza added that the FPI is willing to volunteer its resources to help the Marcos administration identify smugglers, and in doing so, save its members from further losses due to smuggling.
He noted that if the Bureau of Customs (BOC) can be directed to disclose to FPI the contents of vessels' inward foreign manifests (log book of inbound cargo ships), it could easily point out the red flags in suspicious shipments. (PNA)
