Free Trade 15: Customs Bureaucracy

If we have free trade, then we will be free to export and import the things that we produce and consume, free of some unnecessary government bureaucracies like the Bureau of Customs (BOC). The only commodities that will be subject for inspection and possibly prohibition, are bombs, guns, poisonous chemicals, virus-infected plants and animals, fake drugs, etc. All other commodities will be allowed entry, free of taxation, free of arbitrary prohibition, and free of being subjected to extortion.

A friend in facebook, Mike Perez Bautista (he agreed that I'll mention his name and experience here) imported a small item -- a 200g package of wires, microchips, ethernet chip, circuit boards and manual. These are small scientific study materials that are delayed clearance by the BOC.

Perez added that "it's an open-source electronic prototyping platform for mechatronics development application: small production automation, communication, agricultural technology... The very basic tool that made CHINA rich now."

BOC simply prohibits the release of such small package of scientific materials. See the DHL tracking here.

As of today:

Tuesday, November 09, 2010 Location Time
16 Clearance delay MANILA - PHILIPPINES, THE 02:39

Monday, November 08, 2010 Location Time
15 Clearance delay MANILA - PHILIPPINES, THE 04:08

Sunday, November 07, 2010 Location Time
14 Clearance delay MANILA - PHILIPPINES, THE 05:03

Saturday, November 06, 2010 Location Time
13 Clearance delay MANILA - PHILIPPINES, THE 02:56

Friday, November 05, 2010 Location Time
12 Clearance delay MANILA - PHILIPPINES, THE 02:50

Thursday, November 04, 2010 Location Time
11 Clearance delay MANILA - PHILIPPINES, THE 03:58

Wednesday, November 03, 2010 Location Time
10 Clearance delay MANILA - PHILIPPINES, THE 06:15
9 Processed for clearance at MANILA - PHILIPPINES, THE MANILA - PHILIPPINES, THE 06:15
8 Arrived at Sort Facility MANILA - PHILIPPINES, THE MANILA - PHILIPPINES, THE 05:59
7 Departed Facility in HONG KONG - HONG KONG HONG KONG - HONG KONG 02:56
6 Processed at HONG KONG - HONG KONG HONG KONG - HONG KONG 02:54

Tuesday, November 02, 2010 Location Time
5 Processed at HONG KONG - HONG KONG HONG KONG - HONG KONG 07:15
4 Arrived at Sort Facility HONG KONG - HONG KONG HONG KONG - HONG KONG 04:42
3 Departed Facility in HONG KONG - HONG KONG HONG KONG - HONG KONG 03:37
2 Processed at HONG KONG - HONG KONG HONG KONG - HONG KONG 03:36

Monday, November 01, 2010 Location Time
1 Shipment picked up HONG KONG - HONG KONG 22:15

In short:

Shipment was picked up in HK Nov. 1, 10pm,
departed HK Nov. 3, 3pm
arrived Manila Nov. 3, 6pm...
BOC clearance delays until today, or 6 days now, and counting...

Perez lamented the insensitivity of our "public servants" and how those bureaucrats would probably wish to see Filipino engineers and scientists to plant camote (sweet potato) instead.

Know how much is the value of those tiny wires and circuit boards? Just $30.

Perez added that "It should be free from customs and other taxes as explained by the florence agreement. Or taxed at same rate as local made products." But BOC says there's a fee of P500, or an effective tax of around 40 percent. And they want him to go to the BOC office himself. Count also the opportunity cost of travelling from the south or north of Metro Manila to the BOC port area, gasoline, hours and effort that could be used in more productive work than dealing with a bureaucracy.

Free trade. We simply need it. Now.

Freedom from bureaucracy. We simply need it too. Soon.
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See also:
Free trade 9: Parallel Importation of Medicines, May 22, 2008
Free Trade 10: More on Unilateral Trade Liberalization, July 15, 2008
Free Trade 11: Global Petition, Keynes, March 19, 2009
Free Trade 12: Trade and World Peace, April 28, 2009
Free Trade 13: Benefits of Dumpiing, June 16, 2009
Free Trade 14: Import Substitution, AFTA, China, January 08, 2010