Customs files smuggling raps vs rice importer

MANILA, Philippines – The Bureau of Customs has filed smuggling-related cases against  Intercontinental Grains International Trading Inc. for importing rice without the required import permit.

The charges stem from the company’s illegal importation of over 5,400 metric tons of rice from September to October last year with a total dutiable value of P76.9 million.
The estimated value of the rice is P217 million.

Two separate complaints were filed by the BOC with the Department of Justice against Edgar Salvador, proprietor of Intercontinental Grains, company president and chairman Reginald Sihiyon, corporate secretary Ruperto Guilaran, treasurer Zarian Lanzar, and directors Emma Dequilla and Apolonio Magno.

Charges were also filed against the firm’s customs brokers Baltazar Ramirez and Ailene Rejuso.

The respondents face multiple counts of violating Sec. 3601 of the Tariff and Customs Code of the Philippines (TCCP) and Sec. 29 of Presidential Decree (PD) No. 4 which states that only the National Food Authority is allowed to import rice.

Under the law, private entities must first secure a permit from the NFA before they are allowed to import rice.

Each count of violating Sec. 3601 of the TCCP carries a maximum punishment of 10 years imprisonment and a fine of P50,000; while violation of P.D. No. 4 is levied a maximum penalty of four years imprisonment and a fine of P8,000 per count.

Intercontinental Grains imported 4,750 metric tons of rice through the Manila International Container Port and another 675 metric tons via the Port of Manila. Both shipments came from Thailand.

However, based on records from the NFA, Intercontinental Grains was allotted a total import, quota of only 1,565 metric tons in 2013.

The NFA also confirmed that none of the shipments of the firm were covered by any import permit, nor were any documents filed before 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. 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,” Customs Commissioner John P. Sevilla said.

Data from the BOC showed that Intercontinental Grains was one of the biggest rice importers last year. The company, together with Bold Bidder Marketing, Silent Royalty Marketing, Starcraft International Trading Corporation and Medaglia De Oro Trading, cornered a combined 75 percent of the 200,000 metric tons of rice that entered various ports in the country without the required import from NFA in 2013.