The Bureau of Customs (BOC) has filed smuggling cases against Intercontinental Grains International Trading, Inc., one of the Philippines’ biggest rice importers in 2013, for importing rice without the prerequisite permit from the National Food Authority (NFA).
The charges stem from the firm’s alleged illegal importation of over 5,400 metric tons (more than 5.4 million kilograms) of rice from Thailand between September and October 2013. The rice has a total dutiable value of P76.9 million and an estimated market value of P217 million.
Two separate complaints were filed by BOC acting district collectors Mario Mendoza of the Port of Manila and Elmir Dela Cruz of the Manila International Container Port (MICP) against Intercontinental Grain’s proprietor Edgar Salvador, president and chairman Reginald Sihiyon, corporate secretary and director Ruperto Guilaran, treasurer and director Zarian Lanzar, board members Emma Dequilla and Apolonio Magno, as well as the firm’s customs brokers Baltazar Ramirez and Ailene Rejuso.
The eight face multiple counts of violating Section 3601 of the Tariff and Customs Code of the Philippines (TCCP), which prohibits any importation that does not comply with the necessary regulations, and Section 29 of Presidential Decree Number 4, as amended by P.D. No. 1485, stating that only the NFA can import rice and that private entities that wish to do the same must secure a permit from the agency.
Each count of violating Section 3601 of the TCCP carries a maximum punishment of 10 years’ imprisonment and a fine of P50,000, while every violation of P.D. No. 4 is levied a maximum penalty of four years’ imprisonment and a fine of P8,000.
Of the total 5,425 metric tons of rice imported by Intercontinental Grains late last year, 4,750 metric tons were sent through MICP and another 675 metric tons via the Port of Manila. However, based on records from the NFA, the firm had been allotted a total import quota of only 1,565 metric tons for 2013. The NFA also confirmed that none of the shipments of Intercontinental Grains was covered by any import permit nor were any documents filed with the agency.
“The fact that Intercontinental Grains did not bother to file a permit with the NFA and ignored the quota it was allotted signifies bad faith and a gross disregard for our laws,” Customs Commissioner John Phillip Sevilla said.
“These import volumes are regulated to ensure fair trade and an even playing field for our local rice industry, which firms like Intercontinental Grains ignored to the detriment of our farmers,” Sevilla added.
Intercontinental Grains, along with Bold Bidder Marketing, Silent Royalty Marketing, Starcraft International Trading Corporation, and Medaglia De Oro Trading, cornered a combined 75% of the 200,000 metric tons of rice that entered various ports in the country in 2013 without the required import permit from NFA.
Image courtesy of Naypong at FreeDigitalPhotos.net
