Rice import restrictions a ‘hanging issue,’ says De Lima

MANILA, Philippines - Justice Secretary Leila de Lima believes the National Food Authority (NFA) might have some problem in imposing the quantitative restrictions on rice importation if the expiration of government’s commitment to the World Trade Organization-General Agreement on Tariffs and Trade (WTO-GATT) is strictly read.

In an interview, De Lima said a legal team from the Department of Justice (DOJ) has come up with an initial position, although her legal opinion has yet to be released.

“If we go by the strict legal sense of the issue, I’m afraid we have some problem there,” she said.

“Because as we very well know, the WTO-GATT is a commitment. That forms part of the law, the maxim pacta sunt servanda (agreements must be kept).” 

However, De Lima said the DOJ is considering views contrary to this interpretation.

“The international law was ratified by the President and concurred by the Senate, and has since become part of our body of laws,” she said. “What should be answered now is the question: which should prevail, the WTO agreement or the domestic law?”

De Lima said this is a “hanging issue” emanating from the varying interpretations on the rice import quota that the government has imposed.

“We are currently studying the matter and we are looking at varying interpretations,” she said.

De Lima said the DOJ and the Office of the Solicitor General would still have to weigh the conflicting views before issuing a definitive legal opinion.

“I have also ordered a thorough study into the legislative intent of the Agriculture Tariffication Law,” she said.

Stakeholders in the rice industry have been waiting for the DOJ legal opinion to guide the courts in resolving petitions for injunction filed by rice importers.

The GATT has allowed WTO member-countries to restrict the importation of sensitive agricultural products.

However, the agreement expired in June 2012.

While renegotiating with member-countries on the extension of the pact, the government has continued to impose the quantitative restrictions.

In questioning the policy, rice importers said their importations should be allowed even without import permits as long as the corresponding taxes are paid, now that the WTO-GATT has already expired. 

BOC dealing with smuggling

At the Bureau of Customs, public information officer Charo Logarta-Lagamon said they have initiated a multi-pronged approach to deal with the problem of smuggling of agricultural commodities.

“I think everybody knows that we are not denying that smuggling is still a concern even for the new leadership of the bureau... (But) we are doing a multi-pronged approach to keep smuggling to a minimum,” she said.

The smuggling of agricultural commodities cannot be stopped overnight, Lagamon said.

New Customs Commissioner John Sevilla has given priority to transparency in transactions at the BOC. 

Details of every importation could now be seen through the BOC’s website.

Stringent measures have also been imposed to prevent unscrupulous people from entering BOC premises and acting as fixers for firms transacting business.

Lagamon said since assuming office last Dec. 9, Sevilla has initiated systemic reforms at the BOC because smugglers would just change company name and resume their activities if authorities would only concentrate on running after them.

“The commissioner is now addressing the problem... at the core of the system to mitigate and eventually eradicate smuggling,” she said.

The BOC has issued several alert orders for shipments, and some smugglers have reportedly stopped operating.

Lagamon said the BOC has tied up with the Bureau of Internal Revenue (BIR) to check the registration of importers.

“The BIR checks if they have a record of the importer, and if proper taxes were paid,” she said.

“By doing so they weed out the fictitious companies and identifies those that have the capacity and  legitimacy to import.”

Many of the cargoes passing through the “green lane” belong to multinational companies, Lagamon said in response to allegations that it is being used as an avenue for smuggling.

Even if smugglers manage to slip their shipment through the green lane, they would still be caught by the Post Entry Audit Group under the Department of Finance-Fiscal Intelligence Unit, she added.      – With Evelyn Macairan