Sunday, September 21, 2014

IF PRICES RISE SKY-HIGH, BLAME CUSTOMS!

If prices of fruits, food stuffs, canned goods, milk and even ingredients used in making them go really SKY-HIGH in the coming weeks all the way to the Christmas season, blame the Bureau of Customs.

Not typhoons ‘Luis’ or “Mario,’ or the traffic but Customs.

Two long-time and tested informants of mine way back in my media days, one with Customs himself and the other a brokerage firm employee, gave me this STOMACH-TURNING and GRIM SCENARIOS:

The main reason why the ports remain congested up to now is because of the SLOWER THAN TURTLE PACE disposition of shipment release papers from the Customs Law Division.

And the astronomical grease money’ that accompanies the release papers. My Customs informant said the bribes are computed on a per container basis, with amounts going as high as P200,000 each.

My Customs informant revealed that he knows of at least two cases wherein a decision had been rendered as far back as April and May but the release papers are still with the law division.

When the release papers do finally come out form the law division, the importer still has to settle with the assessment division, in the process spending an additional P20,000 to P30,000 per container just to finally get their goods.

Add the storage/demurrage fees and other expenses and easily, the importer incurs more than P1 million in minimum added expenses.

Added costs which the importer WILL RECOVER, AND CAN ONLY RECOVER, FROM US CONSUMERS. Not from Customs, not from the importer’s supplier. the only way to do it…raise prices.

My Customs informant said this is also another MAJOR REASON why the ports got congested these past few months.

My broker informant said to date, their industry’s earnings have already gone down by as much as 30 to 40 percent, with importers simply refusing to import as often as they should

Even if their market or clients are still around, since they can’t be 10 percent sure if they’ll really earn from a shipment and how long will it take to get their goods out of Customs and recover their investments.  

“So don’t be surprised if you read or hear of Customs brokers reducing the number of their personnel, even if the Christmas season is  just around the corner,” my  informant cautioned. 30



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