BOC seizes P24.7M worth of misdeclared rice and garlic imports

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ID-100211731The Bureau of Customs (BOC) seized an estimated 145,000 kilograms of glutinous rice and about 200,000 kilograms of garlic illegally imported through the Mindanao Container Terminal (MCT) in Tagoloan, Misamis Oriental.

The shipments have an estimated total market value of P24.7 million.

The garlic, consigned to Kenshien General Merchandise based in Nazareth, Cagayan de Oro, arrived August 24 from Shandong, China, and was packed in 13,332 bags that were stored in four forty-foot equivalent units (FEUs). Import documents filed by Kenshien showed that the firm paid only P237,076 in duties and taxes, a discrepancy of about 46% versus past importations of garlic of similar weight which amounted to P520,000 in customs payments.

Under the Tariff and Customs Code of the Philippines, a discrepancy in value between the declaration of the importer and the findings 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 at MCT on September 4 from Vietnam and was consigned to Gold Friends Enterprises, based in Kauswagan, Cagayan de Oro. It was packed in 2,900 50-kilogram sacks stored in five FEUs. The rice was misdeclared as “household ware” and did not have the required import permit from the National Food Authority (NFA).

Presidential Decree 4 and Republic Act 7178 or the Agricultural Tariffication Act mandate that only the NFA can import rice, and that private entities that wish to import the commodity 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,” acting district collector Atty Ruby Claudia Alameda of the BOC-Port of Cagayan De Oro said in a statement.

“That means accuracy and truthfulness in all import declarations and fulfillment of requirements such as import permits from regulatory agencies,” Alameda added.

Aside from seizure and forfeiture proceedings against the rice and garlic shipments, BOC will conduct further investigation to determine the culpability for smuggling of the owners and customs brokers of both Kenshien General Merchandise and Gold Friends Enterprises.

Image courtesy of Naypong at FreeDigitalPhotos.net