THE DEPARTMENT of Finance (DoF) said it hopes to share information with major trading partners in order to get a better indication of the extent of the smuggling problem.
Finance Secretary Carlos G. Dominguez III said that the Bureau of Customs (BoC) should be able to establish a seamless exchange of data on the volume and value of goods exported to the Philippines, which would provide early warning of any discrepancies with Philippine imports data — a red flag for smuggling activity.
“I asked him to go to four countries: China, Japan, South Korea, and the US. These are our four biggest trading partners,” Mr. Dominguez said in a statement yesterday, referring to Customs Commissioner Isidro S. Lapeña.
“You have to be able to pick up the phone and call them (the heads of other customs agencies) personally,” he added.
Mr. Lapeña visited Beijing on Feb. 8-10 to meet officials from the General Administration of China Customs (GACC) led by Deputy Director General Zou Zhiwu.
The GACC is set to sign a cooperation agreement by April during a visit of these Chinese officials to Manila.
Philippine official imports data from China is not in sync with official Chinese exports data, with a 48% gap noted in the first half of 2017.
Mr. Dominguez said the discrepancy is likely due to the gross misdeclaration of goods, and the possible use of “consignees for hire,” by which imported goods are released to traders not found in Customs records.
Philippine Statistics Authority data show that China was the country’s top trading partner in the first half of 2017, with total trade amounting to $11.355 billion. Exports to China stood at $3.308 billion while imports were valued at $8.048 billion.
Japan accounted for total trade of $10.768 billion, with exports to Japan totalling $5.378 billion and imports $5.391 billion.
The US was the third-largest market with total trade of $8.021 billion, with exports of $4.571 billion and imports of $3.450 billion.
Trade with South Korea was valued at $4.889 billion, with exports worth $1.296 billion and imports at $3.593 billion. — Elijah Joseph C. Tubayan
