The Hand That Twists the IAC-T’s Arm

The Hand That Twists the IAC-T’s Arm
by Karla Espinosa
 
On 26 March 2009, the Philippine Tobacco Institute, Inc. (PTI) submitted a letter (dated 19 March 2009) to the Secretariat of the Inter-Agency Committee – Tobacco (IAC-T) requesting the Committee to issue “notices outlining the status of tobacco advertising, promotions and sponsorships,” particularly, “a declaration stating that tobacco promotion as well as tobacco advertising, including mass media advertising; [sic] continue to be allowed under the regime created by the Tobacco Regulation Act.”

The Principal’s Problem

The request arose from the recent policy adopted by the Bureau of Food and Drugs (BFAD) to deny all applications for the issuance of sales promotion permits filed by tobacco manufacturers and importers, and to subsequently refuse to receive such applications.

The BFAD policy was pursuant to a directive earlier issued by the Office of the Undersecretary
of Health for Standards and Regulations. The directive called the Bureau’s attention to and instructed it that since July 2008, all promotions, advertisements and sponsorships of tobacco products are already prohibited, in accordance with R.A. No. 9211 or the Tobacco Regulation Act of 2003.

In its letter-request, PTI mentions that several tobacco manufacturers, namely, Philip Morris Philippines Manufacturing, Inc. (PMPMI) and Fortune Tobacco, Inc. (FTI), have received letters of denial from the BFAD. It also says that PMPMI and FTI have been constrained to take action to protect their interests.
 

Indeed, on 5 January 2009, the BFAD denied PMPMI’s application for a sales promotion permit for its Gear Up promotional activity. It also refused to accept PMPMI’s application for its Golden Stick promotional activity. PMPMI then filed on 19 January 2009 a letter Appeal with the Office of the Secretary of Health, assailing as contrary to law the BFAD letter of denial as well as the Undersecretary’s directive on which the denial was based.

On 7 April 2009, the Secretary of the Department of Health met with representatives from tobacco companies to explain the position of BFAD and the Department on the matter. Later, the Secretary reportedly denied PMPMI’s appeal and affirmed the BFAD letter of denial, although a signed decision is yet to be released to the public.

PTI’s membership includes PMPMI and FTI, among other tobacco manufacturers. PTI is funded by membership
dues.

Tobacco Manufacturers’ Hand

Mandated to further its members’ interests, PTI now comes to the IAC-T to wring out an issuance that would effectively overturn the DOH/BFAD ruling and enable PTI’s members to continue their promotional activities already held illegal by the proper agencies.

In the IAC-T meeting last April 22, the bone of contention was PTI’s March 19 letter requesting IAC-T to issue its position on the BFAD’s stance on tobacco advertising and promotion. The question of whether or not the IAC-T even has the authority to make such an issuance to begin with was vigorously debated on mainly by PTI on one side and the DOH and FCAP on the other.

PTI reiterated its position that the Committee should issue a declaration stating that tobacco promotions continue to be allowed under R.A. No. 9211, invoking the IAC-T’s exclusive power to administer and implement the statute. On the other hand, FCAP contended that the failure of PTI’s members to secure permits from the BFAD does not warrant the exercise of IAC-T’s power to implement and administer R.A. No. 9211.

As discussed in its letter dated 20 April 2009 in response to PTI’s request, FCAP maintains that “if the PTI has issues with the DOH’s interpretation of what is or what is not prohibited by the law, or its exercise of discretion in issuing permits, then the proper recourse is to elevate the matter to the courts. It should not expect IAC-T to step in and arbitrate
their controversy, or step on another government agency’s authority and exercise of discretion.”

The body eventually resolved that each member submit a position paper on the issues by May 22 and that the body hold a Technical Working Group meeting on May 29. The next IAC-T Meeting was scheduled on June 17.