BOC Cebu files case versus rice importer

CEBU, Philippines -   The Bureau of Customs has filed four separate smuggling-related charges against Starcraft International Trading for allegedly smuggling rice into the country through four ports, including the Port of Cebu, with an estimated market value of P1.8 billion.

Out of the P1,817,000,000 worth of alleged smuggled rice, P381 million worth of shipment reportedly entered through the BOC-Port of Cebu with a total of 9.5 million kilograms of rice with a dutiable value of P150 million. The smuggling case was filed by district collector Roberto Almadin of the Port of Cebu.

Aside from the Port of Cebu, the rice shipment passed through the port of the Manila International Container Port, Port of Davao and Port of Manila and separate smuggling charges has been filed by its respective district collectors.

The rice shipment, which all came from Thailand, Vietnam, China and Singapore, entered through these ports between July to November of last year.

BOC, in a statement said that Starcraft’s president and board of directors will be facing multiple counts of violating Section 3601 of the Tariff and Customs Code of  the Philippines (TCCP) and Section 29 of Presidential Decree (PD) Number 4, as amended by PD No 1485 before the Department of Justice.

BOC, likewise, filed charges against 12 customs brokers for facilitating the unlawful importations of rice made by Starcraft.

The charges stemmed from rice importations of Starcraft totaling to over 45,000 metric tons (more than 45-million kilograms).

BOC said that based on records of the National Food Authority, Starcraft was only allowed to import 1,176 metric tons through Manila.

 This means that the company exceeded its Minimum Access Volume from NFA by over 3,700 percent, BOC said.

The NFA regulates rice imports through Minimum Access Volumes, or quotas that limit the quantity imported to prevent excessive supply and the viability of the local rice industry.

Most of Starcraft’s rice imports were not released by the Bureau by virtue of Alert Orders issued for lack of the required permits from the NFA.

However, Starcraft also filed court cases, arguing that private importers can import rice without securing a permit, citing the expiration of quantitative restrictions on rice imports to the Philippines under the World Trade Organization in 2012.

 But Philippine laws state that only the NFA can import rice and companies who wish to do the same must secure an import permit from NFA.

“Our laws were not changed. Import permits for rice were still required. Starcraft cannot unilaterally interpret the laws by itself. Regulation of rice is critical because millions of farmers’ livelihoods depend on rice farming,” said Customs Commissioner John Sevilla in the same statement.

Starcraft is the 5th top rice importer slapped with smuggling cases by the Bureau.

Data from the BOC showed that Starcraft, along with Intercontinental Grains International Trading, Bold Bidder Marketing, Silent Royalty Marketing and Medaglia De Oro Trading, captured a combined 75 percent of the 200,000 Metric Tons of rice that allegedly entered various ports in the country without the required import from NFA in 2013. (FREEMAN)