NFA clarifies issuance of rice import permits

State-run National Food Authority (NFA) maintained there is no irregularity in the country’s rice imports after the agency was included in the economic sabotage, graft and grave misconduct case filed against former Customs chief Nicanor Faeldon.

NFA has clarified the alleged rice smuggling complaint of Sen. Panfilo Lacson, who also tagged NFA administrator Jason Aquino in his case against Faeldon.

NFA said the issuance of permits to private importers under the 2016 minimum access volume (MAV) scheme early this year was based on the decision of the interagency NFA Council to extend the rice import deliveries from the original Feb. 28 deadline to March 31, and to another later date of June 30.

MAV refers to the volume of a specific agricultural product allowed to enter the country at a lower tariff as a commitment of the Philippines under the General Agreement on Tariffs and Trade of the World Trade Organization. It is being shouldered by the private sector.

“Based on the policy decision of the Council, more than 100 permits were issued to different importers from March to June 30, all of which paid their respective Customs duties or tariffs in advanced, as required under the terms of reference (TOR) for the importation,” NFA said.

“There is no irregularity in the said transactions as decisions by the NFA follow stringent rules with respect to the MAV importation,” the agency added.

In his complaint, Lacson said Faeldon, Aquino and several other individuals should be held liable for allegedly conspiring to smuggle rice shipments without the timely payment of necessary customs taxes and for allegedly allowing the use of fake import permits.

Lacson said on March 9, a shipment of 21,800 bags of Vietnamese long grain white rice valued at $370,000 and consigned to Cebu Lite Trading Inc. (CLTI) entered the Cagayan De Oro port.

Another shipment of 18,200 bags valued at $309,400 entered the port on the same date.

Lacson said the government “was deprived of the use and benefit of the abandoned shipment valued at $680,000 or P34,043,520, computed based on the prevailing exchange rate of P50.064 to $1.”

“CLTI was only one of so many rice importers issued permits during the period, that paid their due customs duties, thus it is puzzling why this company was singled out,” the grain agency said.

A total of P553 million advanced customs duties were paid to the government out of the import permits issued.

To recall, Aquino did not want to allow the extension of rice import deliveries from the Feb. 28 deadline, echoing President Duterte’s call to not allow the entry during the summer harvest season.

However, the NFACouncil decided to do otherwise and the NFA had to abide with the Council’s decision.

The 2016 MAV rice imports TOR states that all rice to be imported under the program “shall be levied with 35 percent tariff to be paid in advance with the Land Bank of the Philippines. However, final assessment and valuation shall be made by the Bureau of Customs.”

“This means that the process of actual importation commenced only after complying with the tariff and other documentary requirements, and after due evaluation by the NFA’s MAV post qualification team,” NFA said.

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