2 Cagayan de Oro importers face smuggling raps

MANILA, Philippines – Two importers in Cagayan de Oro City are facing smuggling charges as the Bureau of Customs (BOC) seized their contraband shipment of glutinous rice and garlic with an estimated market value of P24.7 million ($552,195*).

Ruby Claudia Alameda, BOC acting district collector in Cagayan de Oro, said the agency is conducting investigation on Kenshien Garlic General Merchandise (KGGM) and Gold Friends Enterprises (GEF) “to determine (their) liability for smuggling.” 

KGGM only paid BOC P237,076 ($5,300.10*) worth of duties for its 200,000 kilograms (kg) of garlic from Shandong, China, which arrived on August 24 at the Mindanao International Container Terminal (MICT).

According to Almeda, the amount was 46% less than the usual P520,000 ($11,625.18*) worth of duties importers pay for the same shipment of the same weight.

The undertaxing of the goods was a violation to the Tariff and Customs Code of the Philippines.

On the other hand, GEF failed to secure National Food Authority (NFA) permits when it imported 2,900 sacks of glutinous rice. The imports were also misdeclared as “household ware,” Almeda said.

Importing rice into the country without NFA clearance violates Presidential Decree No. 4 and the Agricultural Tariffication Act.

“Let these seizures be a reminder to all importers that we expect no less than full compliance with the law. That means accuracy and truthfulness in all import declarations and fulfillment of requirements such as import permits from regulatory agencies,” Alameda said in a statement on Tuesday, October 14. ­

Many erring importers attempt to increase their profit margin by misdeclaring shipment of these commodity goods to evade Customs duties.

In July, Cagayan de Oro-based importer Aiza Salise and licensed customs broker Antonio Castro Enriquez were charged for allegedly smuggling garlic worth P30 million ($670,683.31*).  This came amid skyrocketing prices of garlic in the market as traders opt to import rather than buy local farmers’ produce. – Mick Basa / Rappler.com

(*$1=P44.73)