Firm linked to Bangayan charged with smuggling

MANILA, Philippines - A company linked to alleged rice smuggler Davidson Bangayan, alias David Tan, was charged with smuggling yesterday before the Department of Justice for bringing in over 5,400 metric tons of rice from Thailand worth P217 million.

The Bureau of Customs (BOC) filed a smuggling case against Intercontinental Grains International Trading Inc.

The BOC lodged two separate complaints against the firm’s proprietor Edgar Salvador; president and board chairman Reginald Sihiyon; corporate secretary Ruperto Guilaran; directors Zaruan Lanzar, Emma Dequilla and Apolonio Magno, and the firm’s customs brokers Baltazar Ramirez and Ailene Rejuso.

Customs Commissioner John Sevilla said the rice shipment was seized because it was not covered by an import permit from the National Food Authority (NFA).

The Thailand rice was shipped into the country between September and October last year through the Manila International Container Port.

The shipment has a total dutiable value of P76.9 million and an estimated market value of P217 million.

“The fact that Intercontinental Grains did not bother to secure a permit from the NFA and ignored the quota it was allotted signifies bad faith and a gross disregard for our laws,” 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 ignore to the detriment of local farmers,” he added.

The respondents were charged with multiple counts of violating Section 3601 of the Tariff and Customs Code of the Philippines (TCCP) and Section 29 of Presidential Decree No. 4 as amended by PD No. 1485.

The laws provide that only the NFA can import rice. Private entities importing rice must first secure a permit from the NFA.

Violation of Section 3601 of the TCCP carries a maximum penalty of 10 years imprisonment and a fine of P50,000. Violation of PD No. 4 has a maximum penalty of four years imprisonment and a fine of P8,000.

Intercontinental Grains is the fourth largest importer of rice in 2013. Last year, the firm reportedly imported 26,175 tons of rice, way above the 1,565 metric tons allowed by the NFA for the company, Sevilla said.

He added that the seized rice would be auctioned off to help generate revenue for the BOC.