Batangas court upholds BOC’s ‘no permit, no entry’ policy on imported rice

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The Bureau of Customs (BOC) scored a win in its fight against smugglers of rice whose imports were seized for the lack of the required permits from the National Food Authority (NFA). The Batangas Regional Trial Court (RTC) dismissed the petition for declaratory relief filed by Bold Bidder Marketing and General Merchandise, through the firm’s representative Ivy Souza, against the NFA and BOC, for lack of jurisdiction.

“This decision reinforces the legal right of the Bureau of Customs not to allow the entry of rice without the required permits from the NFA. From the start, we were committed to challenging judicial rulings that favor illegal rice importations that have disastrous effects on our farmers,” said Customs Commissioner John P. Sevilla

In a 20-page Resolution, Batangas RTC Branch 5 Judge Eleuterio Larisma Bathan held that the trial court cannot assume jurisdiction over Souza’s petition because she had already violated NFA Memorandum Circular No. AO-2K13-03-003, which requires an importer to have an NFA import permit prior to the importation of rice. The trial court judge said an action for declaratory relief cannot prosper if the questioned law, treaty, issuance, or rules and regulations have already been violated.

“In other words, a court has no more jurisdiction over an action for declaratory relief if its subject has already been infringed or transgressed before the institution of the action,” penned Judge Bathan.

The Batangas case stemmed from a Petition for Declaratory Relief filed by Souza in November 2013, arguing that the NFA Memorandum Circular has no more effect because of the special treatment of quantitative restrictions accorded to the Philippines under the World Trade Organization (WTO) had already expired.

However, the World Trade Organization Committee on Trade and Goods has allowed the Philippines to extend its special treatment for rice through the imposition of quantitative restrictions until 2017. The WTO also allowed the Philippines to provide minimum market access for rice imports and establish country-specific quotas.

“The WTO has given its imprimatur to the continued imposition of restrictions as regards the importation of rice citing its critical importance to the country. The WTO’s decision has made it very clear that importers should still hold valid import permits from the NFA for rice,” added Sevilla.

Rice imports are regulated by the NFA to ensure fair competition and the viability of the local rice industry.

Bold Bidder Marketing and General Merchandize imported 50 container vans wth 1,250 Metric Tons of rice through the Port of Batangas and another 387 container vans with 9,675 Metric Tons through the Port of Manila and the Manila International Container Port from October to November 2013. These shipments were held by BOC and placed under Alert Orders because the firm failed to secure import permits, a violation of NFA Memorandum Circular No. AO-2K13-03-003.

Last March, the Supreme Court barred the release of 189,540 bags of rice imported by Bold Bidder, St. Hildegard Grains Enterprises, Starcraft Trading Corp., Intercontinental Grains, Medaglia De Oro Trading, and Silent Royalty Marketing that arrived in Manila without the proper import permits pending resolution regarding the issue of whether or not import permits for rice are still required following the expiration of the special treatment on rice under WTO.