USDA, NSO statistics hint pork smuggling going on

We commiserate with hog growers on the issue of technical smuggling, but perhaps never on “pork-less” days. US statistics on pork exports to our country appear to validate decade-old accusations that imported pork choice cuts, which are subject to a 40-percent duty, are being declared as offal (feet, tongues, rinds, heads, hearts) which has a preferential 5-percent tariff. Philippine offal and choice cuts imports are sourced from 20 exporting nations, with the US share reaching about 30 percent on choice cuts and 18 percent on offal. (National Statistics Office [NSO])

Pork data from the NSO and the US Department of Agriculture (USDA) are available, and therefore used as reference points. The NSO reported the Philippines’ combined importation (from all sources) of choice cuts and offal in million kilos, as follows: 83 million in 2009, 147 million in 2010 and 136 million in 2011.

Imports from the United States for the two items, based on NSO: 31.2 million in 2011, from 44.5 million in 2010, which are comparable to USDA statistics at 31.7 million (2011), and 45.2 million (2010). But the similarity ends when choice cuts and offal are segregated: for 2010, pork choice cuts export to the Philippines—39.6 million (USDA); but it’s only 24.7 million per NSO, the latter short by 14.9 million (38 percent). On the other hand, offal trade data at 5.6 million from

USDA is smaller than NSO’s 19.8 million, the former in excess by 14.2 million. Was there a “misrepresentation” somewhere to possibly peg some other pork categories as offal, as hog raisers are complaining?

On pork “muscles” allegedly being declared as swine “front feet,” the loss in government revenues is significant. The foregone revenues resulting from the misrepresentation could have built classrooms in the countryside where backyard hog breeding or fattening is a family pastime. Remember our grandparents? Children were sent to elementary public schools with proceeds from the sale of a pair of mature swine.

A reading of the prior years’ statistics shows pork imports have dropped in general in 2011 but not for liver and pig fat. But it isn’t enough as the gap between import valuation and reporting remains. NSO foreign trade statistics are based on “copies of import documents submitted to the Bureau of Customs (BOC) by importers or authorized representatives as required by law.” Another speedy source is the online submission of an electronic copy of a document.

Government should heed backyard growers’ clamor to stop the pork smuggling. It’s now or never!

—MANUEL Q. BONDAD,

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