The Bureau of Customs seized an estimated 145,000 kilograms (145 metric tons) of glutinous (“malagkit”) rice and an estimated 200,000 kilograms (200 metric tons) of garlic illegally imported through the Mindanao International Container Terminal (MICT) in Tagoloan, Misamis Oriental. The shipments have a total estimated market value of P24.7-Million.
The garlic, consigned to Kenshien General Merchandise based in Nazareth, Cagayan de Oro arrived last August 24, 2014 from Shandong, China packed in 13,332 bags that had been stored in four (4) 40-foot container vans. Import documents filed by Kenshien showed that the firm only paid P237,076 in duties and taxes, a discrepancy over almost 46% versus the past importations of garlic of similar weight which reached P520,000.
Under the Tariff and Customs Code of the Philippines, a discrepancy in value between what was declared by the importer and what was found during examination by BOC examiners and assessors that exceeds 30% constitutes “prima facie” evidence of fraud, with the shipment subjected to seizure proceedings.
The rice, on the other hand, arrived in MICT on September 4, 2014 from Vietnam and was consigned to Gold Friends Enterprises based in Kauswagan, Cagayan de Oro. These were packed in 2,900 50-kilogram sacks stored in five (5) 40-foot container vans. The rice was misdeclared as “household ware” and did not have the required import permit from the National Food Authority.
Presidential Decree 4 and Republic Act 7178 or the Agricultural Tariffication Act mandates that only the NFA can import rice and private entities who wish to do the same must secure a permit from the agency.
“Let these seizures be a reminder to all importers that we expect no less than full compliance with the law. That means accuracy and truthfulness in all import declarations and fulfillment of requirements such as import permits from regulatory agencies,” said Ruby Claudia Alameda, Acting District Collector of the BOC-Port of Cagayan de Oro.
Aside from seizure and forfeiture proceedings on the rice and garlic shipments, the Bureau will also conduct further investigation to determine culpability for smuggling of the owners and customs brokers of both Kenshien General Merchandise and Gold Friends Enterprises.
