Cebu brokers, importer face smuggling raps

CEBU, Philippines - The Bureau of Customs has filed a string of criminal charges before the Department of Justice against the importer and brokers of the P512 million worth of smuggled rice seized in Cebu and Manila last year.

The complaints for smuggling were separately filed by Customs 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 against Bold Bidder Marketing and General Merchandise represented by Ivy Souza and its brokers Kathryn Rosaroso, John Kevin Cisneros, Francis Rudolfh Forneste, and Elbert Lusterio.

Each of the respondents 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 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 P4,000 fine per count.

Almadin said the seized rice shipment has a total dutiable value of over P186.5 million. He said P170 million of the P512 million rice shipment from Vietnam was seized in Cebu upon its arrival between August and September last year.

The other parts of the shipment were seized in the port of Manila and Manila International Container Port in October and November last year, respectively.

BOC commissioner John Sevilla said the people behind Bold Bidder have filed numerous cases questioning BOC’s authority to seize its rice shipments, even cases against them at the Office of 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,” Sevilla said in a statement.

The commissioner added that the rationale behind securing import permits is not merely based on compliance but it is also meant to ensure that the over 2.4 million farming households and agricultural industry are not adversely affected by a sudden surge in imported rice.

Bold Bidder allegedly imported rice from Vietnam from August to November 2013 without any import permit issued by the National Food Authority.

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 BOC official said Presidential Decree Number 4 provides 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 stated that duly-licensed importers must apply to import rice from the NFA, which in turn would determine eligibility and set the allowed volume.

In addition, the World Trade Organization Committee on Trade and Goods has allowed the Philippines to extend Quantitative Restrictions 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. (FREEMAN)