An anti-smuggling group called for more transparency on import standards testing following the questionable entry of some P95 million worth of suspected substandard steel products at the Subic Bay Freeport last month.
Fight Illicit Trade, or Fight IT, chairman Jesus Arranza questioned the legal basis of the Department of Trade and Industry in issuing a “provisional” import commodity clearance on the shipment of 5,000 metric tons of deformed steel bars (rebars) that arrived in Subic on April 25.
Philippine Iron and Steel Institute president Roberto Cola said the product sample testing of shipment from China was “done in haste and utmost secrecy.”
“We understand that only three samples were tested and these samples were taken without a witness from the Bureau of Customs and an industry technical expert of the Federation of Philippine Industries,” Cola said in his letter to Trade Secretary Adrian Cristobal on May 23, 2016.
PISI said that of the 500,000 bars that were imported, only three samples were taken and tested without the usual and required presence of customs and Federation of Philippine Industries officials.
In contrast, locally produced steel of the same volume must have around 250 samples for testing.
PISI said it was “very concerned” about the practice since it had previously found instances where samples were replaced prior to testing.
Cola had said that in the October 2013 earthquake in Cebu and Bohol, collapsed buildings and houses were found to have substandard imported steel bars without the required logo, a mark that would identify the manufacturer.
Arranza, who is also the chairman of the FPI, confirmed that no industry technical expert witnessed the inspection and testing of the questionable shipment consigned to Mannage Resource Trading Corp.
An agreement between the Bureau of Customs and the FPI requires the presence of representatives from both parties during the inspection of suspected smuggled shipment.
Arranza said the illicit practice cheated the consumers out of their hard earned money and threatened their safety and security.
“In recent natural disasters like the earthquake in Bohol and flooding caused by typhoons, many properties destroyed were found to be made up of sub-standard construction materials,” he said.
“We call on the Trade Department to ensure transparency and apply the same stringent quality examination applied to locally made products in dealing with these types of suspicious shipment. There should be no special treatment,” Arranza said.
He also questioned the supposed “provisional” ICC issued to the consignee saying the ICC is only issued after sufficient inspection.
“There is no such thing as ‘provisional’,” he added
Cola, in his letter to Cristobal, asked the department to conduct a resampling and testing of the MRTC shipment in the presence of the Customs Bureau and FPI representatives.
Cola said the Trade Department should implement the PNS 49:2002 sampling procedure of one sample per 2,000 pieces (20 metric tons) for shipment in question.
The shipment contained 500,000 pieces of 12 mm diameter by 12 meter length.
“The tests should be those tests required of all Philippine PS Certified rebars manufacturers before distribution of the same and should be applied to imported bars upon reaching Philippine soil, before it leaves the jurisdiction of the Bureau of Customs,” Cola said.
