By Prince Golez
President Ferdinand Marcos Jr. is considering the recommendation of the Société Générale de Surveillance SA (SGS) to conduct pre-shipment inspections to prevent agricultural goods smuggling and ensure their safety for public consumption.
“This scheme would minimize smuggling. It will be essentially…pre-shipping inspection,” Marcos Jr. said after meeting SGS Vice President George Bottomley and Managing Director Cresenciano Maramot on Thursday in Malacañang.
“Ibig sabihin, bago pa isakay ‘yung produkto sa barko doon sa pinanggagalingan, inspeksyunin na nila para sasabihin nila, ‘totoo ito, tama ang timbang, tama ang quality, tama ang nasa record na pinanggalingan’ — all of these items. Para hindi na natin kailangan gawin dito sa Pilipinas,” he explained.
The President said that they will extend to cover agricultural invoices so that shipments are paid prior to the arrival of the planes or ships, thus speeding up the process.
It is also necessary to conduct a cost analysis first to ensure that no additional burden is imposed on consumers.
The UN Commodity Trade data for the Philippines showed that some 20.48 percent discrepancy in the reported values of agricultural imports from 2010 to 2021 were found, resulting in revenue losses for the government.
The discrepancy was 34.74 percent for edible vegetables, roots, and tubers, and 41.89 percent for swine meat (fresh, chilled, or frozen).
Pre-shipment inspection (PSI) and conformity assessment procedures, on one hand, would ensure that the quantity and other specifications of the goods comply with sanitary and phytosanitary import permits and test for the presence of diseases, among other things.
SGS claimed it would combat smuggling and prevent the spread of diseases such as African swine fever and Avian Flu, and that inspection and testing fees would be paid for by the exporter.
Under the arrangement, SGS will create a digital invoice in a standardized format prescribed by the authorities on an online government platform for registered or authenticated agricultural exporter/seller/supplier.
The invoices would be available in real time to the Department of Agriculture (DA), Bureau of Internal Revenue, and Bureau of Customs, which would deter importers from manipulating or falsifying invoices and, instead, increase tax compliance, and enable cross-agency trade data reconciliation.
To prevent hoarding and price manipulation, the system will also ensure that all agricultural imports are recorded and accounted for. The exporter would also cover the costs of registration/authentication and platform operation.
Meanwhile, Marcos Jr. directed the Department of Finance (DOF) and the DA to study the proposal and devise a mechanism to implement it.
SGS is a testing, inspection, and certification Swiss company established in 1878 with an aim of ensuring the quality and safety of products based on health, safety and regulatory standards. It has 2,650 offices and laboratories and employs 97,000 personnel in 140 countries.
From 1986 to 2000, the Philippines contracted the SGS to verify the quality, quantity, and price of imported goods before they were shipped to the country.
SGS is currently working on the fuel marking program with the DOF.
