Industry groups have asked President Marcos to revisit a policy granting tax and duty-free privilege to importers of palm oil purportedly for animal feeds compounding.
Jesus Arranza, chairman of the Federation of Philippine Industries (FPI) and president of the Coconut Oil Refiners Association (CORA), made the appeal following the rampant cases of technical smuggling.
Arranza said he sent a follow-up letter to President Ferdinand Marcos Jr. who is also the concurrent DA secretary, to reiterate their intention to work with Agriculture Undersecretary Domingo Panganiban in putting a stop to the illegal use of imported palm olein by some unscrupulous traders.
“The DA should also revisit this policy of allowing zero VAT (value-added tax) and duty free importations of palm olein as this is clearly hurting the local coconut and palm oil farmers and producers. There should be strict validation relative to such reason given by importers and effective monitoring on where these importations are actually utilized,” Arranza said in his letter to the President.
In a previous letter, Arranza informed the President that he got hold of documents that may aid the government in going after traders who managed to get duty and tax-free privilege from the Bureau of Animal Industry (BAI) but used their importations for purposes other than compounding of animal feeds.
According to Arranza, the imported palm olein reportedly ended up in the market as cooking oil or were channeled to bio-diesel producers as substitute to the more expensive coconut oil. Arranza added that he and other industry leaders are ready to help the DA in launching an investigation.
In reaction to the letter, The Office of the President promptly directed Panganiban to act on the matter.
Weeks later, Arranza said he received a letter from the DA updating him on “alleged selling of imported animal grade palm consumption in the country.”
Arranza also the Bureau of Animal Industry against issuing requests to import palm olein on VAT and duty-free basis.
Arranza, also the chairman of Fight Illicit Trade (FightIT), said the investigation should zero in on BAI, which gave permit to import tax and tax-free and all the recipient of BAI exemption “to prove that what they imported VAT-free and duty-free were really used for feeds compounding.,
Arranza said local coconut and palm oil players are seeking a dialogue and meeting with DA officials. – Irma Isip
