Marcos Eyes Pre-Shipping Inspections To Curb Smuggling Of Agricultural Goods

In a bid to curb the smuggling of agricultural products, President Ferdinand Marcos, Jr. said he is considering the recommendation of Société Générale de Surveillance SA (SGS) to conduct pre-shipping inspections also to ensure that goods are safe for public consumption.

"This scheme would minimize smuggling. It will be essentially a pre-shipping inspection," Marcos was quoted by the Presidential Communications Office (PCO) following his meeting with SGS Vice President George Bottomley and Managing Director Cresenciano Maramot in Malacañang on Thursday.

"This means that even before cargo is loaded to the ships, inspections of the products would already take place to ensure their correct weight and quality. It would also hasten the releasing process once it arrives in the country," Marcos explained in Filipino as translated by the Manila Times.

The president said the inspections would cover even agricultural invoices so that shipments are already paid prior to the arrival of planes or ships, thus leading to a faster process. He also underscored the need to conduct a prior cost analysis to ensure that no added burden will be imposed on consumers.

The United Nations Commodity Trade data for the Philippines said some 20.48% discrepancy in the reported values of agricultural imports from 2010 to 2021 were found which meant huge revenue losses for the government, the PCO said.

Data shows that the discrepancy for edible vegetables, roots and tubers is at 34.74 percent while for swine meat – whether fresh, chilled or frozen), the discrepancy was at 41.89 percent.

Conducting pre-shipment inspections would not only address smuggling concerns but could also help contain the spread of diseases such as African Swine Fever and Avian Flu, SGS said.

The group also said inspection and testing fees would have to be shouldered by the exporter.

SGS would create a standardized digital invoice in a format prescribed by local authorities. This would be available on an online government platform for registered or authenticated agricultural exporters, sellers, or suppliers, the PCO said.

The invoices can be accessed in real-time by the Department of Agriculture (DA), Bureau of Internal Revenue (BIR), and Bureau of Customs (BOC) which, according to SGS, would prevent importers from issuing falsified invoices allowing for increased tax compliance and enabling cross-trade data reconciliation.