The Federation of Philippine Industries called for a review and revision of the implementing rules and regulations on the importation of mandatory products such as steel.
“It is in effect adding provisions illegal to the Philippine National Standards. The sampling method being used currently is illegal based on the Asean Harmonized Tariff Nomenclature code,” FPI president Jesus Arranza said in a briefing Tuesday.
He noted that the local sampling process, a test of quality for steel products, was deficient because it did not conform to the standards set by the Bureau of Product Standards.
Under the Asean Harmonized standards, the protocol calls for at least one bar of the product for every 20 metric tons.
“If they refuse to amend the IRR, then I think, we’ll have to go to the court,” said Arranza, who spoke in behalf of Filipino industries and enterprises facing trade challenges.
Arranza cited the ongoing case of 5,000 metric tons of steel shipment from China that recently received a release from the warehouse to its intended market by Subic Port officials despite misdeclaration as stated in the import entry.
The shipment of deformed reconstruction bars or rebars imported by Mannage Resources Trading Corp. in April used the tariff heading of 72.28.30.90, which had a Bureau of Customs reference value of $340 per ton.
In contrast, the BoC reference value was $380 per ton for carbon rebar and $410 per ton for alloy rebar. The misdeclaration resulted in a loss of P2.25 million in taxes for the government.
The importer also allegedly did not declare the specifications and grade of the steel bars as required “for the interest of public safety.”
The shipment should have followed the PNS sampling process, which would require 250 samples to be tested for a 5,000-metric ton quantity, rather than the single test done for the entire shipment of imported rebar in question, the steel group said.
The Metal Industry Research and Development Center said it only took three samples from the 5,000 MT steel shipment following the advisory of the BPS.
One rebar underwent quality testing and the remaining two were spare samplings, the center said.
The local steel group said it was committed to correct the illegal importation of the substandard steel products.
Faced with a steel importer cartel that brings down the prices in the market since their products lacks the proper seal of quality, the Philippine Iron and Steel Institute said it would continue its advocacy to rid the industry of substandard products and unmask importers engaged in technical smuggling.