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Anti-Smuggling
The Federation of Philippine Industries (FPI) is a strong advocate against illicit trade and smuggling, recognizing the significant damage these activities inflict on the Philippine economy and society. Here’s a breakdown of FPI’s key advocacy points:
Key Concerns and Impacts:
Economic Losses:
- The FPI highlights the massive revenue losses suffered by the government due to unpaid duties and taxes. This includes substantial losses in value-added tax (VAT). “Based on the Multi-Industry Illicit Trade research study conducted by the University of Asia and the Pacific covering eight (8) industries with so-called frequently smuggled products: 1. Petroleum 2. Steel 3. Resins 4. Wood 5. Cigarettes 6. Sugar 7. Palm Oil 8. Automotive batteries, the government has lost PhP904.6 Billion in duties and taxes from 2011 to 2015.”
- Smuggling undermines legitimate businesses, leading to production losses, reduced employment, and a decreased contribution to the country’s GDP.
Harm to Local Industries:
- Illicit trade floods the market with cheap, often substandard goods, creating unfair competition for local manufacturers. This can lead to factory closures and job losses.
- Specific sectors, such as the tobacco and agricultural industries, are particularly vulnerable.
Consumer Safety:
- Smuggled goods often bypass quality control and safety standards, posing risks to consumer health and safety.
Erosion of Public Trust:
- Illicit trade undermines the rule of law and erodes public trust in government institutions.
Advocacy Actions:
Calling for Stricter Penalties:
The FPI advocates for harsher penalties for smugglers, including classifying certain smuggling activities as economic sabotage and making them non-bailable offenses.
Enhanced Enforcement:
FPI urges government agencies to intensify their efforts to combat smuggling through stricter enforcement of existing laws, increased maritime patrolling, and improved customs systems.
Inter-Agency Collaboration:
The FPI emphasizes the need for closer collaboration between government agencies, industry stakeholders, and law enforcement to effectively address illicit trade.
Policy Recommendations:
FPI provides policy recommendations to the government, such as mandating the destruction of confiscated smuggled goods and allocating additional funds for anti-smuggling efforts.
Public Awareness:
FPI works to increase public awareness of the detrimental effects of illicit trade.
Supporting Legislation:
FPI actively supports legislature that increases the penalties for smuggling.
In essence, the FPI’s advocacy is driven by a commitment to protecting Philippine industries, safeguarding government revenues, and ensuring consumer safety.
