Just to reply as candidly as possible as to why the locally-produced rifle of UDMC is not necessarily cheaper than its imported counterpart specially the Norinco brand from China.
1st, UDMC does not use local raw materials to produce its rifles. Even if we want to buy local rawmats, there are NONE available locally. The Philippines has no production of special alloys foremost of which are the T6-7075 aircraft grade aluminum (for the receivers), AISI 416 stainless steel Premium (for the barrels), AISI carbon steel (for the barrels), AISI 8620 and Carpenter steel (for the bolts), etc. The MIM technology for the production of small parts has not yet been perfected in the Philippines.
2nd, UDMC buys its raw materials from ISO-certified and reputable suppliers from abroad. The use of raw materials from China is a big NO!
3rd, UDMC uses CNC machines that are imported and subject to tax and duty. It's spare parts are also imported and subject to taxes and duties. There are no locally-made CNC machines that meet exacting tolerances of the firearms industry.
4th, UDMC uses toolings, end mills and other consummables which are imported and subject to taxes and duties. There are no locally-made consummables.
5th, UDMC uses design and programming softwares which are state-of-the-art that are imported from France and are the same softwares being used in the aerospace and defense industries globally. We have to upgrade versions of these softwares from time to time and there are costs associated to it. There are no locally-developed softwares such as these. We also do not use pirated software copies. Even our Microsoft and other business softwares are licensed copies.
6th, Production of assault and sporting rifles in the M4 and M110 platforms is not the same as making pistols. Do not compare apples and oranges.
7th, UDMC is an ISO-certified company and has a Quality Management System that guarantees quality. It has a Warranty Program right here in the Philippines and not in a faraway country.
8th, UDMC imports its raw materials legally and pays the correct duties and taxes. (We will post a sample computation sometime later today.)
9th, An importation of a raw material or mill run part will be levied by almost 50% add-on rate when it reaches the Philippines on top of the FOB price from origin country. (We will post a sample computation sometime later today.)
10th, UDMC pays and remits the correct VAT, corporate income tax and other taxes. We maintain and report to the BIR the correct income statement, balance sheet, among others. We depreciate our capital equipment and leasehold improvements. We pay business permits. We pay rent on the building that we occupy and we follow the Labor Laws of the land as a minimum requirement and give productivity incentives.
11th, Our equipment, finished products and people are insured against personal accidents, fire and other perils.
12th, UDMC produces and promotes it's own corporate name and brandname and does not imitate, copy or fake the famous international brands like Bushmaster, DPMS, Colt, Spikes Tactical, etc. for which you should be careful about buying such "imported" firearms because THEY ARE NOT! If not smuggled into the country, these so-called imported or foreign brands are made of inferior materials and demilled parts stolen from armories. They may function well for weekend warriors but are definitely not for military use.
For good corporate governance, UDMC pays the correct taxes and duties like a legitimate corporation should. Do you?
