SC allows customs to seize alleged smuggled rice for now

MANILA, Philippines – The Supreme Court (SC) on Tuesday, February 25, temporarily reversed the order of a regional trial court judge in Davao that prevented the Bureau of Customs (BOC) from seizing allegedly smuggled rice shipments of a trading firm.

The alleged smuggled goods were held by the BOC after their scheduled entry through the Port of Davao without an import permit from the National Food Authority (NFA). Davao City Regional Trial Court (RTC) Judge Emmanuel Carpio ordered them to be released to one Joseph M. Ngo, who bought the goods from trading firm Starcraft International.

In the order issued Dec 12, 2013, Carpio limited BOC’s powers to act on Ngo’s case. The BOC was prevented from implementing “any issuance to retain Mr. Ngo’s rice shipments and doing any acts which would prejudice Mr. Ngo.”

On January, the RTC declared moot and academic appeals from BOC and the Department of Agriculture (DA), a motion for reconsideration, and an urgent motion to lift/dissolve the writ of preliminary injunction.

The DA and BOC is challenging RTC’s order before the SC.

Temporary restraining order

But the SC issued Tuesday a temporary restraining order (TRO) on the lower court’s preliminary injunction against BOC. It also required Judge Carpio to comment on the petition. 

An administrative complaint was also earlier filed against Carpio before the High Court. 

The Samahang Industriya ng Agrikultura (Sinag) Incorporated, a group of agricultural stakeholders, filed the complaint on February 5. Sinag said Carpio should be liable for “gross misconduct and knowingly rendering an unjust judgment.”

Sinag said in their complaint that BOC was merely doing its duty, implementing a procedure long adopted by its office.

In his initial RTC appeal for the release of the shipments, Businessman Ong argued that NFA’s quantitative restrictions (QR) – such as requiring a permit on rice imports – can no longer be imposed in view of the expiration of the Special Treatment for Rice Importation.

The NFA’s power to implement QR on the volume of rice entering the country was granted by the World Trade Organization (WTO) to the Philippines. It expired in June 2012.

DOJ ‘confidential’ letter not final

Department of Justice (DOJ) Secretary Leila de Lima said on Tuesday that goods without an NFA-issued import permit are considered smuggled, echoing the sentiment of Customs Chief John Sevilla. (READ: 5 rice importers probed for smuggling)

“Ang position ko diyan only for that issue na kailangan ba ng import permit is certainly kailangan ng import permit. Yung quantitative restriction, hindi puedeng kung sino na lang ang mag-iimport na walang appropriate authority from the appropriate agency which is DA and the NFA,” she said.

(My position on that, only on that issue, is that an import permit is certainly needed. On the quantitative restriction, people can’t just import without the authority from he appropriate agency which is DA and the NFA.)

But in an earlier letter dated December 16 and tagged confidential, De Lima wrote to DA Secretary Alcala that the expiration of NFA’s power to implement QR must be honored.

“It is not for nothing that the Philippine government gave its consent to the WTO Agreement. It did so fully knowing that the extension of its authority to impose QR on agricultural products shall only be by agreement after the conduct of negotiations, thus constituting a self-imposed limitation on the exercise of its sovereign power to impose such restrictions unilaterally,” she wrote.

On Tuesday, De Lima said she is not yet prepared to disclose to the public DOJ’s full opinion on the matter, as it may jeopardize the negotiations.

Negotiations on the QR extension up until 2017 is currently underway before the WTO. 

Clear policy guidelines needed

Sevilla earlier said the BOC is awaiting the opinion of the DOJ and the SC on the matter, after reports surfaced on the possibility that the DA may face WTO sanctions for the continued implementation of QR.

The justice secretary added that ramifications of volume restrictions on rice imports are not limited to legal issues, especially since rice is a staple food in the country.

“May mga economic implications ‘yan, implications on the national economy beyond agriculture,” she said. “So I’m hoping na magkaroon ng talagang discussions diyan sa Cabinet level. We want a clear policy guidance. Although the existing policy now espoused by the DA and NFA is the continued imposition of QR,” she said.

(There are economic implications there, implication on the national economy beyond agriculture. So I’m hoping that there will be discussions on the cabinet level. We want a clear policy guidance. Although the existing policy now espoused by the DA and NFA is the continued imposition of QR.) – Rappler.com