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High customs valuation by China affects banana chips industry
Davao City (28 June 2005) -- The export volume of banana chips in the Davao region reached 1.351 million kilos during the first quarter this year and could be higher in the succeeding quarters if not for the high customs valuation by China last May.

Mirope Lamsen, agribusiness marketing assistance division chief of the Department of Agriculture in Region XI said from 7.5 per kilogram RMB last year, it has soared up to 20 per kilogram RMB this year.

She said this would lead to a drop in export of the banana chips.

"As a result of this other buyer reduce the buying of cardava because of the decrease of the price in the China market, and some are also holding on their inventory ; last May this year because of the drop in the price of banana chips "she said.

Banana chips processors currently buy cardava at P2.00 to P2.85 per kilo compared to the previous price of between P4.00 to 5.00 per kilo.

She said although those accredited processors with ISO certification have other market like Japan those who do not fall within the accreditation solely depend on the China market.

"They are the producers that are badly hit by the high customs valuation that even other similarly situated processors already stop operation," she said.

She, however said that there are processors who grabbed the current low market price in China but placed other producers to a disadvantage.

She said that a government-to-government discussion between the Philippines and China must be pushed to really find out the cause of the high customs valuation.

"It is only the China market that accepts banana chips products even from non-ISO accredited producers", she said.

She also said that while Thailand and Vietnam impose duty free on banana chips some of the exporters pass on their products to these countries but dropped the Philippine made label.

"This will not also give good value to our produce because Philippine banana chips fetch a better price than those from other countries because of quality," she said. (PIA/pdb)

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