The Philippine Coconut Authority (PCA) with the help of business groups will start a thorough probe on the reported rampant technical smuggling of palm oil.
Through a memorandum of agreement, PCA has authorized the Federation of Philippine Industries (FPI), Coconut Oil Refiners Association (CORA), and Fight Illicit Trade (FightIT) to examine and develop ways to combat smuggling, monitor injurious import transactions, and prevent the proliferation of substandard products in the market.
Jesus Arranza, president of CORA and chair of FPI, said among their first initiatives is a thorough investigation of the technical smuggling of palm oil, which, Albay Rep. Joey Salceda, said led to a government revenue loss of P45 billion over six years.
Salceda reported this was done through misdeclaration of palm olein that unscrupulous traders were bringing into the country purportedly for compounding of animal feeds worth P300 billion. However, these palm olein imports, Salceda claimed, were refined and converted into cooking oil for human consumption.
The MOA also tasks the signatories to “continuously dialogue in crafting and formulating a reportorial system that will identify and apprehend various illicit activities that are seriously affecting the coconut industry.”
They are also mandated to: jointly conduct scientific research in developing high-value products to maximize the full potential of the coconut product; conduct product selection that will best fit intercropping to make full advantage of the spaces in between the coconut trees; and conduct any and all other activities that will redound to the benefit of the local industry as well as the coconut farmers.
In his letter to President Ferdinand Marcos Jr., Arranza said they received reliable reports and obtained some documents that may lead to a thorough investigation and catch unscrupulous importers who are actually using palm olein for other purposes but are declaring their importations as for compounding of animal feeds to avoid the payment of value-added tax and other taxes and duties.
Arranza said a big portion of the imported palm olein is being diverted for sale to end-users.
