Domestic manufacturers asked the government to intensify their efforts to combat smuggling and illicit trade, echoing President Ferdinand Marcos Jr.’s strong stance against these harmful practices.
Federation of Philippine Industries (FPI) chairman Jesus Arranza, during the First National Anti-Illicit Trade Summit on July 25 at the Manila Hotel, emphasized the need for swift action from regulators following the President’s firm declarations against smuggling and illicit trade in his State of the Nation Address.
FPI president Jesus Montemayor also underscored the detrimental impact of smuggling and illicit trade, labeling them not only as economic crimes but also as social menaces that threaten legitimate businesses and the overall economy.
Despite inclement weather, the summit drew a gathering of industry leaders and government regulators including officials from the Department of Finance, Department of Trade and Industry (DTI), Department of Agriculture (DA), Bureau of Customs (BOC) and the National Bureau of Investigation (NBI).
The FPI urged regulators to share their ongoing initiatives against illicit trade and outline plans for intensified campaigns in line with President Marcos’s directives.
Citing a commissioned study, Arranza said the government was losing P250 billion in value-added tax (VAT) annually due to smuggling, highlighting the displacement of local manufacturers, workers and farmers as a consequence.
The FPI’s policy recommendations include classifying industrial product smuggling as economic sabotage, a non-bailable offense and mandating the destruction of all confiscated goods, regardless of their conformity with Philippine standards.
The FPI also requested regular updates from regulators on apprehensions, raids, and case outcomes.
“We are pleased to have engaged directly with regulators to exchange insights and foster future collaboration,” said Arranza.
“The summit demonstrated the urgency of protecting Philippine industries from the devastating effects of illicit trade. As President Marcos declared, ‘The days of smugglers are numbered.’ It is now up to the regulators to deliver on this promise,” he said.
