The Bureau of Customs seized an estimated 1,250 Metric Tons (1.25-Million kilograms) of white rice that had been arrived in the country without the required import permits from the National Food Authority (NFA). The rice, stocked in 25,000, 50-kg bags, was contained in 50, 20-foot container vans, have an estimated market value of about P50-Million.
The rice arrived at the Manila International Container Port from Bangkok, Thailand last June 2, 2014. It consigned to Tres Mujeres Agri Venture. The shipment was subject of derogatory information received by the Bureau’s Enforcement Group. Upon further verification with the NFA, it was found that this particular shipment of rice was not issued any import permit. Moreover, as the shipment remained unclaimed beyond 30 days upon arrival in the country, the Tariff and Customs Code of the Philippines provides that this should already be considered abandoned by the consignee.
“Regardless of circumstances, it is very clear in the law that import permits are a requirement before the Bureau can clear regulated shipments like rice and all illegally imported items are subject to seizure. We will no longer tolerate nor allow situations where importers can clear shipments without valid permits as this puts our people in compromising situations and breeds corruption. It’s strictly ‘no permit, no entry,’” stressed Customs Commissioner John P. Sevilla.
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. 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, which would be endorsed to the WTO General Council, 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. The extended QR will give more time for local farmers to improve efficiency and the local rice industry to build production capability and reduce costs to cope with increased competition in Southeast Asia.
