The Federation of Philippine Industries (FPI), which represents the country’s various manufacturing sectors, has called for the designation of industrial smuggling as a form of economic sabotage, advocating for the crime to be made non-bailable.
FPI Chairman Emeritus Jesus Arranza emphasized that industrial smuggling should be classified alongside the current law that treats agricultural smuggling as an act of economic sabotage.
The Anti-Agricultural Economic Sabotage (AGES) Act imposes harsher penalties on smugglers and hoarders of agricultural food products, including cartels. It considers smuggling and hoarding of agricultural food items as economic sabotage when the value of the goods exceeds P10 million. The law covers products such as rice, corn, beef and other ruminants, pork, poultry, garlic, onions, carrots, other vegetables, fruits, fish, salt, and other aquatic products in their raw state.
“Smugglers are filthy rich; there is no poor smuggler, so they have the money to post bail. They are unafraid because they can pay for their liberty. Let’s make smuggling of industrial products non-bailable, just like smuggling of agricultural products,” Arranza stated.
He pointed out that domestic industries have long suffered due to smuggling. For instance, he cited the tire manufacturing industry, where only one manufacturer remains out of the original five. He also mentioned the once-booming textile industry, which has been severely impacted.
Despite these concerns, the FPI maintains confidence in the new Bureau of Customs (BOC) Commissioner Ariel Nepomuceno. Arranza clearly expressed that all the BOC needs to do is effectively collect the correct taxes and duties on all imports.
A strong advocate of “Buy Filipino, Buy Local,” Arranza emphasized that the government should mandate all its agencies to prioritize purchasing from local producers whenever possible, setting an example for the private sector to follow.
He reiterated that government funds—collected from taxes—should be used to support and sustain local industries. “Since these are the taxes collected from the people, it is only right to return it to the people to help the domestic industries continue running,” he said.
Arranza also called on the government to support local manufacturers by assisting them in research and product development aimed at creating higher-value products.
With 115 million Filipinos, he said, there are enough local consumers to buy products produced domestically. “Consumption will trigger an economic cycle,” he pointed out.
