The Department of Trade and Industry is readying various measures including arming itself with police powers, reinstating pre-shipment inspection, suspension of conditional release of imports, blacklisting smugglers, among others to crackdown substandard products smuggled into the country.

DTI Secretary Peter B. Favila has presented the proposed measures during a meeting with various
industries, which sought for government interventions in light of the implementation of a zero-tariff trading regime in ASEAN starting next year.

“The common issue has always been the matter of smuggling so we are looking into what we can do within our powers and one of the areas we are looking at are measures for product standards and safety,” Favila said.

He said that while the government is ready to implement the existing measures such as anti-dumping, countervailing and safeguard measures against unfair trade practices, the DTI has to add more interventions to existing measures to protect local industries under a tariff-free regime in ASEAN.

Notably, Favila has already asked President Gloria Arroyo for the issuance of an Administrative Order granting DTI police powers on the implementation of padlocking and closures of erring establishments and seizure of products.

DTI has no police powers over nefarious activities and are dependent upon enforcement agencies to implement its orders. Sometimes, however, Favila said that compromises happened resulting in an authorized release of the smuggled or substandard goods without DTI’s knowledge.

“At present, the DTI can only monitor these goods the enforcement is done by other agencies, but there is an industry clamor for the DTI to take a more direct hand to stop these activities from happening,” Favila said.

Under the proposed AO, the DTI’s Bureau of Product Standards would be on top of a composite team in the enforcement of DTI orders.

“I anticipate resistance from those involved in nefarious activities but we are determined there is no hanky-panky this time around,” Favila said.

Favila has also moved for the suspension of the “Conditional Release of Goods” from the Bureau of Customs saying this has been abused.

Favila noted that there were instances when the test results showed the imported goods subjected to conditional release and placed in warehouses of the importer were substandard but the products have already been sold or used up.