THE global shipping problem has forced meat importers to seek an extension of the validity of import clearances for meat products, a measure seen to avert additional costs in the retail price of certain food items.
The Meat Importers and Traders Association (MITA) wrote Agriculture Secretary William D. Dar with a request to extend the validity of both sanitary and phytosanitary import clearance (SPS-IC), and minimum access volume import certificate (MAVIC), by 30 days, to accommodate the delays experienced both in shipping and arrival.
This means that the validity of the SPS-IC would be extended to 90 days from 60, while MAVIC would be valid for 120 days from the current 90.
Skeds in disarray
MITA President Jesus C. Cham explained that the shipping schedules are in “disarray” as result of Covid-19-related mobility restrictions, container imbalance and lack of vessels.
“As a result, shipments are not able to sail or dock in a predictable manner, either at origin or transshipment ports,” Cham said in his letter to Dar, a copy of which was obtained by the BusinessMirror.
“We are seeing delayed arrivals of more than 2 months from the initial [estimated time of arrival],” he added.
Cham pointed out that the extension of validity for SPS-ICs is meant “to account for delayed sailings” while the proposed extension of the MAVICs’ validity is “to account for delayed arrivals.”
The importers face additional costs should the two documents go beyond their validity dates, which could be passed on the value chain—with consumers ultimately paying for it.
An expiration of the documents, despite the availability of the imported goods, would mean additional “delay and unnecessary workload” for the Department of Agriculture (DA) since importers will have to apply for new ones.
Cham also stressed that every time the SPS-IC and the MAVIC expire, the importers ask the exporters to hold the shipment, with the shipper being forced to reschedule on the next available vessel, which translates to additional costs.
On top of this, it also results in the uncertainty of the arrival of the imported meat products since the schedule of the next available vessel is currently “unpredictable”—all the while the products losing their shelf life, Cham explained.
“Needless to say, reefers occasionally run afoul of regulations and end up abandoned or condemned through no fault of the importer or exporter,” he said.
“The country and economy also pay a price,” he added.
Cham told the BusinessMirror that arrival of shipments is now taking more than three months, while other industry players noted it already takes about four months.
People familiar with the matter told the BusinessMirror that the DA is already “looking into” MITA’s proposal. MITA’s letter was also sent to Finance Secretary Carlos G. Dominguez, Socioeconomic Planning Secretary Karl Kendrick T. Chua, Trade Secretary Ramon M. Lopez and Anti-Red Tape Authority Deputy Director General Ernesto V. Perez.
The delays caused by the global shipping problem compound the country’s dwindling pork supply. The Philippines is in dire need of pork, which the government is banking on to be filled by imported supply, as domestic shortfall is estimated to be at least 400,000 metric tons (MT), a consequence of the African swine fever (ASF) outbreaks.
As early as March, the BusinessMirror broke the story that the global container imbalance and lack of vessels pose a huge threat to the government’s plan to flood the market with imported pork. (Related story: https://businessmirror.com.ph/2021/03/30/3-month-shipment-delays-negate-bid-to-hike-meat-imports/.)
Royal Cargo Inc. (RCI) COO Jet B. Ambalada earlier told the BusinessMirror that congestion at transshipment points also worsened the situation for the Philippines. (Related story: https://businessmirror.com.ph/2021/03/26/food-shortage-seen-on-global-supply-woes/.)
“We are facing shipping and logistics problems. For example in Europe, there are a lot of delays due to Covid-19 problems and challenges such as lockdowns,” he said in an interview in March.
“The major problem is that our transshipment points are already congested. For example, Singapore and China ports are congested since these countries are sourcing a lot of raw materials,” he added.
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