FURNITURE FIRMS INCUR LOSSES ON GOV'T DELAY

FOR the sake of the economy, the Cebu Furniture Industries Foundation
Inc. (CFIF) is urging the Philippine Drug Enforcement Agency (PDEA)
and the Bureau of Customs (BOC) to expedite the processing of the
requirements submitted by the owners of seized shipments of imported
coatings and paints, and release these shipments immediately.

"This event has resulted in a big loss of the industry and the
country, as well. But most of all, the Philippines will be losing an
opportunity in the global furniture market," said CFIF president Jay
Yuvallos.

The Cebu furniture industry directly employs some 52,000 people. It
contributes almost $270 million in revenues every year to the country.

Imported paints and coatings are raw materials used in the manufacture
of furniture. These products were seized by the PDEA last May because
they contain toluene, a chemical said to be an ingredient for the
manufacture of Methamphetamine Hydrochloride, commonly known as "shabu."

Yuvallos said the seizure of the shipments has delayed the production
of furniture makers, which will result in complaints from
international buyers.

Companies are also losing on their investment.

Yuvallos said the cost to operate a furniture company on the average
is estimated at P300,000 per day, per company.

For 10 companies, multiplied by 30 days of holding shipments, an
estimated cost of at least P90 million is lost.

The loss can also be translated to a delay in delivery of about 400
containers of finished goods collectively for the 10 companies
amounting to $10 million, he said.

Yuvallos said the ball is now in the hands of the PDEA, as the owners
of the shipments have already submitted the requirements for release
to the agency last month.

Casa Cebuana president Angela Paulin said the production process of
her company is slowing down with the raw materials stranded at the
BOC.

"We have customers waiting for delivery... Business was not good last
year. And now that it is picking up, this is happening," she told a
press conference in Mandaue City yesterday.

Paulin said that in the 50 years of her company, this is the first
time it has been questioned for importing the said raw materials.

Adding insult to injury, owners of the shipments seized have to pay
the BOC storage fees. Paulin said her company's bill for the storage
of its shipment that arrived on May 26 has reached P14,000.

Owners of the other shipments seized include Crafters of Cebu, Diamond
Cane International, Maple and Pine, Mastercraft Philippines Inc.,
Mehitabel Furniture Co., Stonesets International, Tradewinds Rattan
and Wicker and Vine.

Yuvallos said more shipments for this month are coming and will be
apprehended because of the short, if not lack of, notice of the sudden
implementation of the Dangerous Drugs Act of 2002.

"We are willing to comply with the law. But we appeal to government
agencies (such as the PDEA) to properly inform and disseminate
information to avoid these kinds of problems happening," he said.