About the shut down of Mighty Corp warehouse

The Filipino-owned manufacturer Mighty Corp has been dragged in several controversies for the past few months. The Bureau of Customs shut down a warehouse operated by the company in Malolos, Bulacan. As it was lauded by the business sectors and advocacy groups, the regular operation of the company didn’t affected about it.

They suspended the license of Mighty's customs bonded warehouse. But according to

Customs Commissioner John Phillip Sevilla said that the move of the government agency is to prevent revenue leakages while further investigation of the company’s alleged illegal activities.

“The initial report of a DOF task force reveals that Mighty Corp. committed serious violations of tariff and customs laws, rules and regulations, resulting in huge revenue losses for the government,” Sevilla added.

Meanwhile, Mighty’s executive vice president Oscar P. Barrientos said that the suspension order did not cover its operation for the domestic market.

“Nothing has changed, and until such time that we receive the final report of the task force, it will be business as usual,” he said. “We will continue to cooperate with authorities pending the full and final results of the inquiry being undertaken by Task Force Mighty Corp. We will address these allegations at the appropriate time as soon as we receive the final report on the findings. We have been transparent with the customs bureau, and we will continue to be transparent,” Barrientos added.

Mighty was accused of engaging in technical smuggling and downshifting consumption. They said that they barred the company from re-channeling duty-free cigarettes-for-export for domestic distribution and consumption. There are allegations that MC imported acetate tow. The said raw material used for filters, at $0.30 to $0.32 per kilo. They claimed most of their tobacco leaf and acetate tow imports are intended for export.

Is there's a proof that the Mighty Corp did illegal transaction under the law? The rival company didn't publicly announced its merger in 2010. 

Mighty Corp on their 10 million project for the tobacco farmers

Mighty Corp, the Filipino-owned manufacturer of cigarettes was the target of demolition job of its rival company for the past several months. They continued their CSR project in partnership of the farmers in the Northern region of the country. 

In a consultative meeting among the 200 tobacco farmer leaders in Pangasinan, La Union and Ilocos provinces and Mighty Corporation last February 8, with its commitment to help the farmers in the said region.

According to the Mighty Executive Vice President Oscar P. Barrientos said that they sought the help of the National Tobacco Administration. The government authority agreed over their planned purchase of P10-million kilograms tobacco leaves and P10-million Corporate Social Responsibility (CSR) for tobacco farmers and their beneficiaries. “We are grateful and we are looking forward to the firm commitments of Mighty Corporation to help the 65,000 strong tobacco farmers in the Philippines with their pronouncements this year to purchase 10-million kilograms of tobacco leaves and the P10-million outreach projects for tobacco farmers,” said Mario Cabasal, president of the National Federation of Tobacco Growers and Cooperation. With this proposal by the tobacco company there are a lot of opportunities that the farmers can be benefited about tobacco leaves.

Cabasal explained that after they learned about Mighty’s pledge to initially buy at least 10 million kilograms of tobacco leaves and to purchase all the excess tobacco leaves that farmers could not sell to other buyers. He lauded the direct help of Mighty to the tobacco farmers. The said assistance will include the donation of support farm implements like irrigation pumps and tractors, new 200 college scholar grants for the sons of daughters of tobacco farmers and the institutional support for the annual search for outstanding tobacco farmers and cooperatives.

“Now that we are assured of an alternative market, besides other tobacco companies, our members will again be inspired to devote larger areas to the cultivation of Ilocandia’s most important cash crop,” he said. “With Mighty’s assurance that the company will buy all the unsold tobacco harvested by farmers, we can also be sure that unlike in the past, prices will stay high even after the holiday season, Cabasal said.

Mighty's market shares surged almost 20 percent of the low-priced cigarette brands in 2013. It resulted of paying P8.2 billion in excise taxes. Kudos to the people behind this project, it is a great idea to extend their hands to the needy. They prioritize the needs of the farmers.

Mighty Corp’s main concern is the welfare of the tobacco farmers, and not just for the income. 

Mighty Corp speaks up on anti-dumping charges

Over the past several months, Filipino-owned tobacco company, Mighty Corp. chided its critics who pushed over the the allegation on the anti-dumping issue. 

According to Mighty vice president and retired judge Oscar Barrientos said that the critics must think that “ignorance of the law excuses no one,” which referred to the claim of Ilocos Sur-based Banayoyo Reforestation and Tobacco Growers Credit Cooperative.

He added that the said anti-dumping law stated hat “simple assertion, unsubstantiated by relevant evidence, cannot be considered to meet the requirements of the law,” and not a recourse for trial by publicity.

Barrientos dismissed the charges of Francisco Gamboa, president of the said cooperative which claimed that the Wongchuking-owned company been importing tobacco leaf at rates way below the floor price mandated by the government. The law “declared the policy of the state to protect domestic enterprises against unfair foreign competition and trade practices.”

“Gamboa should understand that there are specific requirements for initiating an investigation for anti-dumping,” he said. “These are evidence of dumping, injury and causal link between the dumped imports and the alleged injury; and upon receipt of a properly documented application and before proceeding to initiate an investigation, the secretary [of Agriculture] shall notify the government of the exporting country about the impending anti-dumping investigation.”

“The law requires that domestic producers supporting the application must have at least 25-percent interest of the total production.”, he explained.

Meanwhile, Barrientos said if the agriculture secretary decided to initiate an investigation under special circumstances, “without having received a written application by or on behalf of a domestic industry for the initiation of such investigation,” he should “proceed only if he had sufficient evidence of dumping, injury and a causal link to justify the initiation of an investigation.”

Whatever it takes, Mighty Corp has been dedicated in helping a lot of farmers despite of the issues pointing at the company.

Concerned groups asked to slow down on Mighty Corp's investigation

Bulacan-based tobacco manufacturer, Mighty Corp has been in the middle of controversies for the past several months already. And a lot of concerned groups asked to slow down about the investigations over allegations of underdeclaration of products of an established local tobacco company in the country.

According to Ako-Bicol party-list Rep. Rodel Batocabe said the probe being conducted in the House of Representatives into “unscrupulous entities” in the cigarette industry should not focus solely on one company but the entire industry.

“If we were to investigate, let us not single out one company but [look into] the entire industry to prevent any unnecessary innuendos or speculations,” said Batocabe who also a member of the House Committee on Ways and Means.

“As member of the Ways and Means committee, I believe that any investigation to be conducted should be objective and fair,” Batocabe said.

“And the only interest which we should protect is that of the government,” he added.

Meanwhile, Kabataan party-list Rep. Terry Ridon warned the Congress regarding malciious lies pointing to Mighty.

“… We will always be in defense of national firms against offensives of foreign firms to force it out of business,” Ridon said, implying local companies such as Mighty should be supported for providing livelihood to millions of Filipinos apart from the fact that it is paying billions in taxes to the government.

Mighty legal counsel Miguelito Ocampo denied all allegations against Mighty Corp. “While our company cannot comment on how other cigarette companies price their cigarettes, what we can say is that our company can sell one-peso-per stick cigarettes because... Mighty does not pay royalty fees to foreign companies for the use of our brands of cigarettes,” Ocampo earlier said.