PLYWOOD and sugar producers are raising the alarm over smuggling, particularly at the Port of Manila and the Manila International Container Port.
In a briefing on Tuesday, Maila Vasquez, deputy executive director of Philippine Wood Producers Association said Executive Order 23 is undermining the local plywood industry.

“Since it took effect, our industry has been hard hit by the influx of smuggled plywood from China,” Vasquez said.

“The importation from China surged since such law created a lot of demand from here,” she said.

EO 23, which took effect last February, declared a moratorium on the cutting and harvesting of timber in the natural and residual forests.

Vazquez said China-made plywood has cornered at least 25 percent of the local market.

According to data from China, it exports at least $3-million worth of plywood to the Philippines every month. Comparable data from the Philippines showed only $707,000 worth of imports.

“Where did the $2.3 million of the $3 million go?” Vasquez said.

She said local plywood prices are at par with that of China’s at P330 per quarter inch of 4-by-8 feet
plywood.

“All we want is for the Bureau of Customs to be more vigilant in terms of letting in plywood shipment from China. Otherwise, we expect substantial job loss next year,” Vasquez said.

About 80 percent of the imported plywood enters the POM and MICP.

The local plywood industry employs some 30,000 workers. Every smuggled 40-foot container of plywood costs 16 jobs.

Vazquez said 160 containers of plywood are illegally flooding the local market every month, peaking in July at 400 containers. Every container contains 4,000 pieces of plywood.

Vazquez said the capacity utilization of plywood plants has dropped from 85 percent to 60 percent since February.

Separately, the sugar industry said it has launched “Operation Hammerdown,” which is designed to push for the prosecution of smugglers.

In a statement, the Sugar Anti Smuggling Organization said the campaign is the industry’s response to calls from various stakeholders to intensify anti-smuggling efforts.

“The Operation aims to pursue the prosecution of sugar smugglers by gathering documentary evidence for use by the legal officers of the Sugar Regulatory Authority in conjunction with the Bureau of Customs,” said retired general Joel Goltiao, head of the SASO.

Previous intelligence work has resulted in raids, apprehensions and seizures of smuggled sugar, especially at the POM and MICP.

Operation Hammerdown aims to network with foreign counterparts, especially in Thailand.
The campaign would also entail monitoring of wholesalers and retailers.