Posted on August, 10 2011

Recent developments with a levy on seafood exports from the Philippines herald good news for both producers and conservation in the Coral Triangle. Under this new fiscal arrangement, a fee of 0.2% on wild-caught seafood exports*  will be levied, with revenue supporting the rehabilitation and restoration of marine habitats that have been degraded—contributing to future seafood resources.

According to Dr Jose Ingles, Tuna Strategy Leader of the WWF Coral Triangle programme, and also a member of the National Fisheries and Agriculture Council (NAFC) of the Department Of Agriculture, the 0.2% fee is a fair amount that producers need to incorporate into their operating expenses.

“This is good for the fisheries of the country as all the fees collected, as specifically stated in the law, will be re-channeled back and used for management and conservation purposes ONLY. This is a landmark policy,” explains Dr Ingles, who attended the meetings that discussed this issue. The NAFC is a policy recommendatory Council to the Department of Agriculture.

Initially, the export fee was based on a 3% of the value of export, as mandated under the Fisheries Administrative Order (FAO) 233 of the Bureau of Fisheries and Aquatic Resources (BFAR), signed into law last April 2010. FAO 233 was required under Rule 37.1 of the Joint DENR-DA-PCSD1 Administrative Order No 01, Series of 2004, pursuant to the Republic Act 9147 known as the Wildlife Resources Conservation and Protection Act of 2001.

BFAR created a technical committee that drafted the law which was subjected to regional consultations in Cebu, Davao and Rizal in 2009. But the consultation process involved in passing this law proceeded mainly unnoticed by the seafood traders, canneries and processors as the title of the law related to Aquatic Wildlife Conservation, and the payment of the export fee was a small part of the whole law.

The notice to implement the fee caused plenty of furore, as it would make the value of exports from the Philippines very expensive and no longer competitive against other global suppliers. For canned and fresh chilled tuna, the fee would add to an already high tariff rate of 24% and 18% for both tuna products respectively.

FAO 233 calls for the creation of the Aquatic Wildlife Management Committee at the National and Regional levels, the creation of the Philippine Aquatic Red List Committee (PARC), CITES Management Authority for Aquatic Wildlife as well as Aquatic Wildlife Enforcement Officers and sets the procedure and protocols for the issuance of permits and payment of fees and penalties.

The fees collected shall accrue to the Aquatic Wildlife Management Fund to be exclusively utilized for the rehabilitation and restoration of habitats affected by acts committed in violation of his law, for scientific research, population assessments, enforcement and monitoring activities and for the enhancement of capabilities of relevant agencies.

*based on the value of raw materials’ average national price of the preceding year