The Department of Agriculture and the Philippine Coconut Authority (PCA) are drawing up plans to combat the technical smuggling of palm olein, according to the United Coconut Associations of the Philippines (UCAP).
Jesus Arranza, UCAP past chairman and Coconut Oil Refiners Association president, said he informed President Ferdinand Marcos Jr. about the reported technical smuggling of palm olein being perpetuated by unscrupulous traders who import the commodity for compounding of animal feeds to get value added tax (VAT) and duty exemptions from the government.
However, Arranza said these importers are diverting their palm olein shipments to the domestic market as edible oil and for other purposes, without paying the requisite VAT.
Arranza who is also concurrent Federation of Philippine Industries chairman, said Senior Agriculture Undersecretary Domingo Panganiban summoned the Bureau of Animal Industry, the agency that issues the tax exemptions to palm olein importers, in a meeting, alongside the PCA.
“UCAP is fully supportive of these interventions to put an end to the illegal use of imported palm olein. It is robbing the government of needed revenues and is direly impacting the domestic market of edible coconut oil,” Arranza said. -Jed Macapagal
