Tuesday, April 17, 2007 Siap protests China’s high taxes
SEAWEED industry players in the Philippines and Indonesia are joining hands to ask their governments to negotiate with China in lowering the tariffs and the value-added tax on carrageenan imports from the two countries.
Benson Dakay, president of the Seaweed Industry Association of the Philippines (Siap) and chief executive officer of Cebu-based Shemberg Co. (Shemberg), said China’s tariff on carrageenan imports is at 35 percent and seaweeds at 25 percent.
“We want to protect our carrageenan industry, which has more value added income,” he said in an interview, adding that both Indonesia and the Philippines are major sources of raw seaweeds and carrageenan.
According to Dakay, while China could be a potential market for carrageenan, it chooses to import raw seaweeds and process the raw materials into carrageenan.
This explains why the country has forced higher taxes on imported processed carrageenan, he said.
Siap, in a copy of its petition furnished to Sun.Star Cebu, said it is seeking the assistance of the World Trade Organization (WTO), through the Association of Southeast Asian Nations Ministerial Committee and the Department of Agriculture, against China’s imposition of higher tariff and taxes on imported seaweed and carrageenan.
Both the 35 percent and 25 percent tariffs imposed by the Chinese government are “against the agreement by members of the WTO, where China is also a member,” Siap’s petition read.
Livelihood
Siap, in a special meeting last April 10, also agreed to ask the WTO to formally investigate the matter, which, they said, is affecting the development of the regional seaweed industry and the livelihood of the marginal fishermen.
Seaweed-processing companies, such as Shemberg, process eucheuma cottoni species, which is the raw material for carrageenan, a hydrocolloid food ingredient in powder form that is extensively used as stabilizer, binder, emulsifier, viscosifier and gelling agent for a wide variety of products that include toothpaste, ice cream, meat, chocolate and other food-based applications.
Eucheuma seaweeds are being cultured by poor marginal fishermen since 1972.
Meanwhile, Siap is holding a National Seaweed Summit on June 4 and 5 at the Watefront Cebu City Hotel and Casino.
The summit aims to address the issues faced by the Philippine seaweed industry. (MMM)
