DA chief reduces tuna export fees

Agriculture Secretary Proceso J. Alcala has approved a proposal by a fishing federation in Mindanao seeking the reduction of a current three percent (%) export fee on tuna in a bid to shore up the ailing industry.

Secretary Alcala announced the reduction during his speech at the recently-concluded 13th National Tuna Congress at General Santos City, where he approved to amend Fisheries Administrative Order (FAO) 233 issued in 2010, stipulating fees for the issuance of export/re-export permits equivalent to 3% of export value.

The fee was reduced to merely 0.2% for all fish species caught in Philippine waters.

For his part, BFAR national director Asis G. Perez said the reduced fee is equivalent to P1,650 or 0.2 percent of fish raw material value computed from the previous year’s average wholesale price, whichever is higher, based on price surveys of the DA’s Bureau of Agricultural Statistics (BAS).

The previous 3% export fee was an additional burden and a disincentive for exporters, unduly increasing the prices of tuna products and thus making them less competitive in the world market, according to the SOCSKSARGEN Federation of Fishing and Allied Industries, Inc. (SFFAII).

The measure was counterproductive and inconsistent with the thrust of the government to promote exports, said Marfenio Y. Tan, outgoing SFFAII chairman.
The National Fisheries and Aquatic Resources Management Council (NFARMC) initially promulgated FAO 233, in keeping with the intent of Republic Act 9147 or the Wildlife Resources Conservation and Protection Act of 2001.

The NFARMC is a multi-sectoral, advisory group under the supervision of the DA-BFAR. Among other major tasks, it conducts national consultations to craft needed policies for the protection, conservation, sustainable development and management of the country’s fisheries and aquatic resources. The recommended policies are then sent to the DA Secretary for consideration and approval.

During its July 22, 2011 meeting, the NFARMC upon consultations with tuna industry stakeholders approved the recommendation to reduce the 3% export fee for captured aquatic wildlife like tuna.

Sixty percent of the country’s tuna catch is unloaded at General Santos City, thus making it the “tuna capital” of the Philippines.

The tuna industry is presently facing hard times as a result of a ban on fishing in the high seas imposed by the Western and Central Pacific Fisheries Commission (WCPFC) since January 1, 2010.

Last year, the country’s tuna production totaled 387,101 metric tons (MT), which was 9% less than in 2008. Of the total, commercial fish catch accounted for 70% or 271,625 MT, 14% less than in 2008, the SFFAII said.

In 2010, the total value of commercial fish production was placed at P17 billion, of which P10.7 billion (or 63%) was contributed by the SOCSKSARGEN region.

Total tuna exports in 2010 was valued at US$ 359.4 million (roughly P15.45 billion at $1=P43).

Of the total volume, about 70% was in canned form (76,800MT), and the rest (33,688MT) was either fresh chilled or frozen.

Canned tuna exports in 2010 dropped by 8% compared to 2009 figures, the SFFAII said. DA Information Service