Gov’t to push through with MAV open auction

State-run National Food Authority (NFA) has opened the application for the private sector to import up to 805,200 metric tons (MT) of rice under the minimum access volume (MAV) scheme via open auction.

In its published guidelines, NFA said private traders could import up to 293,100 MT each from Thailand and Vietnam, while the rest would come from other countries.

Philippine private rice importers can also buy up to 50,000 MT each from China, India, and Pakistan, up to 15,000 MT from Australia, up to 4,000 MT from El Salvador, and 50,000 MT from any country.

This is under the guidelines for crop year 2017-2018 Minimum Access Volume-Country Specific Quota and the Minimum Access Volume Omnibus Origin Rice Importation Program.

Earlier this month, the DA proposed an open auction for rice imports and a collabora- tive decision on releasing of permits to private traders.

There will be 48 lots and an eligible bidder can bid in any lot within its capacity to bid as indicated in their certificate.

The NFA Council has set the minimum bid price for the auction at P250 per MT and bid offer shall be increments of P250 per MT.

All auction winners shall be issued with COE to import rice based on the result of the auction and after payment of the service fee.

The COE to import will specify the country of origin, quantity, commodity specification, discharge port, schedule of arrival, and the tentative assessed customs duty.

According to the NFA, traders should bring in well-milled rice with of 25 percent brokens or better.

All shipments will be levied with a 35 percent tariff to be paid in advance with the Land Bank of the Philippines.

NFA said no applicant shall apply for an import volume of lower than 1,000 MT and higher than 50,000 MT for non-farmer organizations and lower than 500 MT and higher than 5,000 MT for farmers organizations.

The first phase of the arrival of rice imports will start in July 2018 to not later than Aug. 31, while the second phase will start Dec. 20, 2018 to not later than Feb. 28, 2019.

Discharge ports are La Union, Subic, Manila, Batangas, Tabaco, and Legaspi for Luzon; Cebu, Iloilo, Bacolod, and Tacloban for Visayas; and Cagayan de Oro, Zamboanga, Davao, and General Santos City for Mindanao.

NFA said all interested NFA-licensed importers should submit documents to the Grains Marketing Operations Department which will include letter of intent, legal, technical, and financial documents.

All applicants will also undergo the MAV pre-qualification team then issued with the Eligibility to Bid and Bid Form, if approved by the NFA administrator.