Bold Bidder Marketing and General Merchandise faces a barrage of smuggling-related cases filed by the Bureau of Customs (BOC) for the illegal entry of over 12.8-Million kilograms (over 12,800 Metric Tons) of rice through Manila and Cebu. The rice shipments have a total dutiable value of over P186.5-Million, with market value estimated at about P512-Million. Three separate complaints were filed by BOC Acting District Collectors Mario Mendoza of the Port of Manila; Elmir Dela Cruz of the Manila International Container Port; and Roberto Almadin of the Port of Cebu before the Department of Justice against Bold Bidder representative Ivy Souza and the firm’s customs brokers Denise Kathryn Rosaroso, John Kevin Cisneros, Francis Rudolfh Forneste and Elbert Lusterio.
The cases stem from Bold Bidder’s importations of rice without any import permits issued by the National Food Authority (NFA) from August to November 2013. The company imported over 4.9-Million kilograms of rice through the Port of Manila; close to 3.7-Million kilograms through the Manila International Container Port; and 4.3-Million kilograms through the Port of Cebu. None of these shipments were covered by any import permit from the NFA nor were any documents filed before the agency.
Further verification with the NFA showed that Bold Bidder secured two import permits in 2013 with a total maximum allowable import volume of 600 Metric Tons.
“The people behind Bold Bidder have filed numerous cases questioning the authority of the Bureau of Customs to seize its rice shipments, even cases against us at the Ombudsman. They have danced around our legal system in desperate attempts to try to get their cache of smuggled rice out. But we have to reiterate that the law is very clear— no one can bring in rice without an NFA import permit. The rationale behind securing import permits is not merely based on compliance. It is also meant to ensure that the over 2.4-Million farming households and our agricultural industry are not adversely affected by a sudden surge in imported rice,” says Customs Commissioner John P. Sevilla.
Presidential Decree Number 4 mandates that only the NFA can import rice and private entities who wish to do the same must secure a permit from the agency. NFA Memorandum Circular Number AO-2K13-03-003 furthers that duly-licensed importers must apply to import rice to the NFA, which in turn would determine eligibility and set the allowed volume.In addition, the World Trade Organization (WTO) Committee on Trade and Goods has allowed the Philippines to extend Quantitative Restrictions (QR) on rice imports until 2017. The ruling allows the Philippines to import 350,000 MT of rice under the Minimum Access Volume (MAV) with a 40% tariff. Imports made outside of the MAV would be levied a 50% tariff.
Souza, Rosaroso, Cisneros, Forneste and Lusterio each face 40 counts of violating Section 3601 of the Tariff and Customs Code of the Philippines for the unlawful importation, which carries a maximum punishment of two years’ imprisonment and a P5,000 fine per count; and 40 counts of violating Section 29 of P.D. No. 4, as amended by P.D. No. 1485, which carries a maximum punishment of six months imprisonment and a P4,000 fine per count.
To protect the value of the seized rice and prevent further deterioration, the BOC-Manila International Container Port sold close to 3.9-Million kilograms of Glutinous Rice (“malagkit”) and 3.5-Million kilograms of White Rice seized from Bold Bidder for over P348-Million last September 11. On October 7, seized rice from Bold Bidder will also be auctioned by the BOC-Port of Manila on October 7. The rice, totaling 1.875-Million kilograms or 37,500 sacks, have been pegged a floor price of P48.5-Million. As the rice is still subject of on-going cases, proceeds from the auction will be held in trust by the Bureau of Customs.
Download – BOC bombards Bold Bidder for illegal rice imports
