Firms seek trade, finance policy on Davao rice cargo

DAVAO CITY, Philippines—The legal counsel of importers whose rice shipments here have been seized by the Bureau of Customs (BOC) upon the instructions of the National Food Authority (NFA) has called on the finance and trade departments to intercede and clarify the legality of the cargo being intercepted despite the importation being in accordance with international trade agreements.

Lawyer Benito Salazar, representing the firms Silent Royalty Marketing and Starcraft International, said quantitative restrictions (QR) on rice trading, which limited the entry of rice into the Philippines, had expired in June under the World Trade Organization-General Agreement on Tariffs and Trade (WTO-GATT).

“This simply means import permits are no longer needed for rice to enter the country, provided the tariff rate of 50 percent is paid by the importer, subject to compliance with customs procedures,” said Salazar, whose clients cried foul over accusations that they smuggled rice into this port.

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“It would be beneficial for all concerned for the finance and trade secretaries to look into the legal and practical ramifications of the NFA’s seizure orders, and share these with the DA (Department of Agriculture) and NFA,” the lawyer said.

“The DOF (Department of Finance) should be able to clarify the legal issues while the DTI (Department of Trade and Industry) can explain what sanctions we could be subjected to by implementing restrictions that have already expired,” Salazar said.

“Unless, the Philippines is ready and willing to admit publicly that it has no intention of complying with its commitments under the WTO, it has no choice but to allow importation of rice without the QR,” he said.

“If the DA and NFA insist to the contrary, then the country should be properly informed and advised to prepare for dispute cases to be initiated by WTO members and the possible sanction that will be imposed,” the lawyer added.

Pilloried

Salazar said his clients were being “unfairly pilloried in the press for violations they did not commit.”

The NFA insisted that rice import permits were still required to bring rice into the country. In a September 2013 letter addressed to Salazar and signed by NFA Special Assistant to the Administrator Dennis Guerrero, the NFA said that “quantitative restriction on rice remains effective” per Republic Act No. 8178.

Salazar, however, disputed this. “The Constitution cannot be any clearer about this. Article II, Sec. 2 of the Constitution says that the country adopts principles of international law as part of the law of the land. Any treaty we enter into must be ratified by the Senate, just like any law must be passed by Congress,” he said.

He added that local laws have to conform to international obligations, and not vice versa. Germelina Lacorte, Inquirer Mindanao