Food importers seek legal action to void a provision in MICP

Local food importers and processors are contemplating a legal action to void a provision in the recently-signed Meat Inspection Code of the Philippines (MICP) which could be a violation of international trade rules and exposes the Philippines to retaliatory measures from its trading partners.

Industry source said that some of the major players in the food importing business and the meat processing sector are now seeking legal counsel to aid them in consolidating their efforts to lobby for the scrapping of Section 54 of the MICP.

"One of the options being looked into is to file a temporary restraining order at the lower courts to stop the implementation of that particular objectionable provision," the source said.

Under Section 54 of the MICP, it is unlawful for any shipping line or airline to accept shipment of meat and meat products for export to the Philippines without securing a Veterinary Quarantine Clearance (VQC) issued by the Department of Agriculture (DA) and the International Veterinary Certificate issued by the national controlling authority of the exporting country.The VQC will then be sent to the foreign supplier, who in turn will be required to include it among shipping documents used to negotiate with banks, such as bills of lading, packing lists, commercial invoices and health-/sanitary certificates issued by the exporting country.

Previously, Agriculture and Food Suppliers Association (AFSA) president Maritess Concepcion said that requiring meat importers to secure two sets of VQCs, one from the exporting country and one from the Philippines is unnecessary.

"This is not necessary because all importers of meat and meat products from DA-accredited countries of origin or establishments have already been pre-approved and pre-cleared under existing multilateral or bilateral agreements, or accreditation procedures."

She said that instead of facilitating trade, it amounts to a de factor import control, a non-tariff barrier with VQC as the control mechanism," she said, adding that if Section 54 is implemented, could irk the country’s trading partners and cite the Philippines for violation of WTO rules.

Concepcion added this will lead to confusion among foreign suppliers because it is not normal trade practice to include quarantine permits of importing countries among negotiable commercial documents.

Previously, AFSA and the Philippine Association of Meat Processors that includes the likes of San Miguel Foods Inc. and the Swifts Foods Inc. said Section 54 was never even discussed in all of the public hearings, nor was deliberated upon by the inter-agency technical working group tasked to study Senate Bill 26911 or the MICP, authored by Senator Ramon Magsaysay Jr., chair of the Senate Committee on Agriculture Modernization.

"Section 54 was stealthily inserted, obviously by parties that wanted to protect the local hog industry, and was included in the final version of the bill submitted to President Arroyo," a PAMPI official said. AFSA and PAMPI claimed the provision did not have the benefit of advice from WTO experts in the DA and the Department of Trade and Industry.

Even international shipping companies will be affected by Section 54 because they will also be burdened with the responsibility of also securing VQCs, otherwise, they will be liable.