At the General Membership Meeting of the Federation of Philippine Industries on August 13, I reported to our domestic manufacturers, allied industries, and partners several developments that helped boost the level playing field for businesses in the country.
I particularly cited the Office of the President and the Bureau of Customs for displaying effective governance.
I commended the administration of President Ferdinand Marcos Jr. Through the Office of the President, Presidential Management Staff, Office of the Executive Secretary, and the concerned departments-PBBM has been responding to the concerns and proposals that we brought to his attention, both through my letters and column here in the BusinessMirror.
Notably, PBBM took cognizance of the following:
1) Illegal importation of palm olein-The Office of the President directed the Department of Agriculture to work with us in addressing the duty-free importation of palm olein purportedly for compounding of animal feeds. This was also investigated by the NBI and BIR. Eventually, this illegal importation, which robbed the government of an estimated P45 billion in revenues over a period of five years, was stopped and an importer has been penalized.
2) Illegal collectors and smelters of used lead acid battery (ULAB)- PBBM’s office ordered the DENR to act on our complaint and investigated the smelters who lack the necessary permits and licenses while operating their environmentally hazardous facilities in San Simon, Pampanga. Their operations were stopped, although one is still doing guerilla smelting.
3) Cigarette smuggling-Our advocacy against the proliferation of smuggled cigarettes in the market continues to bear fruit as various agencies-the NBI, PNP, BOC-have been raiding and seizing millions of pesos worth of smuggled cigarettes.
4) LPG cylinders-We reported to the government that importers are declaring the value of their imported LPG cylinders at only P400/cylinder but refillers are collecting deposits from consumers ranging from P1,400 to P1,900.
5) Imported goods being sold with no Import Commodity Clearance-This is a continuing campaign as despite actions taken by concerned agencies, including raids conducted by the DTI, NBI, and PNP, we continue to see imported products in the market that do not bear the ICC mark, which means they did not pass the requirements prescribed by law.
6) SRA’s order to put additional bureaucratic red tape on the entry of ‘other sugars’-We acted on the complaint of our members in the confectionery and beverage industries that the SRA’s memo would gravely affect their operations. We wrote to the President and also held press conferences. The SRA administrator eventually withdrew his order.
7) Substandard imported automotive batteries-Through our coordination with the NBI and DTI, about P100 million worth of substandard imported automotive batteries were seized in Quezon City, which, to date, is the biggest haul of DTI’s Task Force Kalasag in its campaign against substandard and counterfeit products.
8) BPS order to replace mandatory testing of imported LPG cylinders with factory audits – We campaigned against this memo from the BPS because it runs counter to laws and issuances concerning product standards and mandatory testing by independent third-party testers to protect the consumers.
9) Appeal to issue EO extending inter-agency campaign on smuggling of agricultural products to also include industrial goods to protect domestic industries-the Office of the President wrote a letter to all concerned departments to submit their comments/response to our letter to the President.
10) MOA with the BOC for close coordination with FPI – We have signed a memorandum of agreement with the BOC, strengthening our partnership and creating avenues for better coordination.
11) Assist the steel industry in fast-tracking the elimination of PNS 49:2020 with PNS 49:2026- The 2026 Standards for Reinforcing Steel Bars removes all non-seismic grades. Its immediate implementation means that only seismic bars can be manufactured and sold locally.
12) TRO vs product standards- The Supreme Court has already acted on our petition to include in the Rules of Civil Procedure a provision that only the Supreme Court can issue an injunction order against the implementation of product standards by the DTI and FDA. The Supreme Court has already ordered both the DTI and FDA to submit their comments within 30 days from receipt of the order. This is an offshoot of the TROs issued against the standards of flat glass.
I am also happy to report that the FPI and BOC, under the leadership of my friend, Commissioner Ariel F. Nepomuceno, have strengthened their partnership.
I was having lunch with Ariel in Greenhills about one week before he became BOC Commissioner; that was when he informed me of his transfer from the OCD. I was very excited because the BOC is very important to us domestic manufacturers, and Ariel, leading that agency will be a major boost for us.
And we have seen measurable progress.
From July 2025 to June 2026, the Bureau of Customs conducted 1,090 enforcement and intelligence operations, resulting in the seizure of approximately P40.47 billion worth of illicit goods. The BOC also filed 30 cases involving Customs fraud, smuggling, and unlawful importation.
These figures matter to local manufacturers because every illegally imported or fraudulently undervalued product removed from the market helps restore fair competition.
Just as important to FPI is the renewed partnership between the Bureau and our Federation. Under the BOC-FPI agreement, accredited Industry Technical Experts can assist Customs in monitoring and inspecting high-risk shipments nationwide. The BOC has committed to act on ITE reports within seven days, while a joint monitoring committee meets quarterly to review implementation.
Commissioner Nepomuceno has also made legitimate trade easier. Customs valuation processing has been shortened from five days to three days, while importer, exporter, and customs broker registrations have been extended from one year to three years.
At the same time, stronger post-clearance audits generated about P3.07 billion, reinforcing compliance even after shipments have been released.
In one sector alone, illicit tobacco, the BOC conducted 187 enforcement operations in just five months, seizing approximately P13.5 billion worth of smuggled cigarettes and tobacco products.
For FPI and its members, the most important accomplishments of Commissioner Nepomuceno are not simply higher Customs collections, which, for the first seven months of the year, reached P587.711 billion, the highest collection ever recorded for the January-to-July period.
More meaningful to us at FPI are the reforms that increasingly address a longstanding concern of Philippine manufacturers:
A local manufacturer that pays the correct taxes, follows Philippine standards, employs Filipino workers, and complies with government regulations should not have to compete against imported goods that enter the country through smuggling, undervaluation, misdeclaration, or other fraudulent practices.
The combination of stronger enforcement, better valuation, the reinstatement of FPI Industry Technical Experts, industry data-sharing, digitalization, faster processing, tougher internal controls, and closer government-industry cooperation helps move us toward that level playing field.
We don’t really need to be pampered or be protected, like some would call us THE FEDERATION OF PROTECTED INDUSTRIES.
We just want a level playing field. And we are happy because Commissioner Nepomuceno is taking the time to meet with us regularly to help ensure we achieve that level playing field.
In closing, I want to congratulate the directors, officers, and members of the FPI on a highly successful General Membership Meeting. Your strong turnout underscores our shared commitment and re-energizes our collective fight against smuggling and all forms of illicit trade.
Dr. Jesus Lim Arranza is the Chairman Emeritus of the Federation of Philippine Industries and concurrent Chairman of the Anti-Smuggling and Anti-Illicit Trade Committee.